- Tight imports and scrap shortages lift ADC12
- Market awaits Apr’26 major automaker settlements
India’s aluminium ADC12 alloy ingot prices surged m-o-m in March 2026 across regions amid a rise in raw material prices and sustained firm auto demand.
The spread between scrap and semi-finished products stood largely steady, hovering between INR 41,000-43,000/t in both Delhi NCR and Chennai, due to similar increases in scrap and ingot prices.
Market insights
ADC12 offer levels, particularly across the southern region, have risen sharply, reaching INR 285,000-290,000/t, with some suppliers reportedly offering material at INR 300,000/t. Pune levels are largely in line with southern rates. In contrast, offers in the Delhi region for 30-day payment terms were heard at INR 280,000-285,000/t.
However, OEMs have been reluctant to accept these levels, resulting in notable bid-offer disparities across regions. Buyers are bidding between INR 270,000-280,000/t, with some seeking INR 265,000-270,000/t.
The price surge follows a significant rise in domestic tense scrap prices, hovering around INR 240,000/t in Chennai and INR 232,000/t in Delhi, driven by extreme domestic shortages. Imported material arrivals have fallen consistently from 0.2 mnt in October 2025 to 0.13 mnt by January 2026, due to rising LME aluminium levels and currency pressures. Supply from the Middle East has also been disrupted, with shipments temporarily halted following the closure of Jebel Ali port, one of the region’s largest transshipment hubs.
Bigger secondary producers, particularly those with contractual obligations, have been buying imported scrap on a need basis at elevated levels. Domestic secondary producers, meanwhile, have largely focused on fulfilling strong domestic ADC12 demand, with limited attention on the export market.
On the automotive side, a consignment of 2,000 Hyundai cars from Chennai bound for the Middle East was recently rerouted back to Chennai due to regional tensions. When asked about the impact on ADC12 demand, a southern-based automobile manufacturer informed BigMint that domestic auto sales remain firm. The immediate concern lies with LNG supply availability; most auto companies in the south maintain 15-20 days of inventory, making the situation manageable for now, but it requires close monitoring.
Alloy imports plunge m-o-m
Imports: India’s ADC12 alloy ingot imports recorded a sharp m-o-m decline in Jan’26, with inbound volumes falling around 64%. Total imports dropped to 441 t in Jan’26, compared with 1,215 t in Dec’25. Notably, all imports during Jan’26 were sourced solely from Malaysia, indicating a highly concentrated supply origin.
LME price movements
LME aluminium prices averaged $3,330/t in March, up 7.7% m-o-m from $3,091/t in February on the London Metal Exchange. Meanwhile, LME inventories declined by about 4.8%, falling from 481,489 t to 458,461 t, indicating continued stock drawdowns during the period.
Aluminium prices on the London Metal Exchange surged last week, averaging about $3,306/t, up $129/t or 4% w-o-w, and briefly crossing $3,400/t, a near four-year high. The rally was driven by supply concerns after the shutdown of the Qatalum smelter in Qatar and shipment disruptions from Aluminium Bahrain through the Strait of Hormuz. With the Middle East accounting for roughly 8% of global aluminium output, along with low inventories and limited supply flexibility outside China, the market has turned highly volatile with fears of tighter global supply.
Raw material trends
In March, imported aluminium scrap prices moved higher, supported by firm average prices on the London Metal Exchange at around $3,330/t, amid supply-side concerns and escalating geopolitical tensions in the Middle East. In line with imported scrap trends, domestic aluminium scrap prices–particularly casting-grade material used in ADC12 production–also strengthened, as availability tightened, especially in southern India.
Among key imported grades, US-origin Tense increased by $160/t m-o-m to $2,315/t, while UK-origin Wheel scrap rose by $205/t to $3,120/t.
Meanwhile, China-origin silicon metal 553 prices increased by $18/t, rising to $1,365/t on a CFR Mundra basis, supported by steady demand.
Outlook
India’s ADC12 alloy market sentiment is expected to remain bullish in the near term, supported by firm automotive demand and continued tightness in both domestic and imported aluminium scrap supply. Elevated raw material costs are likely to keep alloy prices well supported across regions. However, buying activity may remain cautious as market participants await major automakers’ price settlements for April 2026, which could provide clearer direction for pricing and procurement trends in the coming weeks.
Leave a Reply