India: Aluminium ADC12 ingot prices stable despite limited buying

India’s domestic aluminium alloy ingot ADC12 prices remained stable w-o-w post-Maruti announcing its March 2023 monthly settlement prices for the same category. The major market participants showed limited buying interest amid the financial year-end.

On the raw material side, a few buyers stated that moderated level of raw material is available at the mills. Many alloy ingot producers in the domestic market have disclosed that there is minor selling pressure in the market but falling scrap prices are helping to keep alloy ingot prices stable as per current market conditions.

However, sales of ADC12 are expected to improve from mid-April 2023, a source informed SteelMint.

Last week, Maruti announced its aluminium ADC12 alloy ingots at INR 212,400/t for March 2023, up INR 4,800/t m-o-m. The February 2023 monthly settlement price was INR 207,600/t.

Currently, the conversion spread between aluminium tense scrap to ADC12 in the local market is at around INR 30,000-35,000/t ($364-425/t).

Established players in the market are quoting higher prices, whereas mid- and small-sized manufacturers are offering at lower levels.

• ADC12 ingot prices are assessed at INR 195,000/t exw-Faridabad (excluding GST), stable w-o-w.

India’s scrap market

The Indian domestic aluminium scrap prices remained stable d-o-d today. Tense prices were reported at INR 160,000/t ($1,943/t) exy-Delhi, while extrusion prices stood at INR 176,000/t ($2,137/t) exy.

However, minor discounts are available in the northern region market depending on the procurement quantity and advance payment terms. Additionally, acute liquidity pressure was exhibited in the last few days.

Meanwhile, LME aluminium futures have edged up by 0.59% to $2,402/t. Despite the recent price revision by primary players, there seems to be no major impact on the local scrap prices. However, the market is awaiting the financial year-end to get a clear price direction.

LME trend

Three-month aluminium futures and spot prices on the LME increased by $103/t w-o-w to $2,389/t yesterday from $2,286/t on 22 March. Aluminium stocks were estimated at 532,025 t, down from 541,325 t last week.