BigMint’s latest assessment indicates that spot prices of aluminium ADC12 alloy ingots in Delhi NCR fell marginally and were at INR 215,000/t, w-o-w ex-works. Similarly, tense scrap prices decreased by INR 3,000/t to INR 185,000/t ex-Delhi, with the scrap-to-ADC12 spread recorded at INR 29,000-30,000/t.
Currently, tense scrap prices in Chennai are around INR 186,000/t. Spot prices of ADC12 in Chennai range between INR 216,000 and INR 217,000/t ex-works, excluding GST. The price spread between tense and ADC12 in Chennai was at INR 30,000/t.
3-Month LME aluminium prices at the time of reporting was down 4% w-o-w at around $2,522/t.
Market participants informed BigMint: “Major auto companies are currently undergoing maintenance for 10-12 days, leading to a slowdown in the demand for ADC12.”
According to BigMint’s assessment, Tense scrap price from the US were down by $50/t to $1,920/t while taint tabor prices (USA, HRB-3%) were at $2,025/t after correcting $50/t.
India’s ADC12 exports have declined. Typically, Japan is the primary destination for India’s ADC12 exports, but demand in Japan has yet to recover. This has led to higher domestic inventories in India, contributing to the slight drop in prices and demand.
Buyer insight
A buyer informed BigMint, “Buyers are currently holding off on purchasing scrap, anticipating further price drops.”
An alloy manufacturer and scrap buyer commented, “Prices have declined following the drop in LME aluminium prices. However, buying activity has been significantly low as buyers are hesitant at current price levels and are waiting for further reductions.”
Domestic scrap market
In the domestic market, tense scrap prices have dropped by INR 3,000/t. BigMint’s assessment shows domestic tense scrap prices (ex-Delhi NCR) at INR 185,000/t.
China’s silicon market
According to BigMint, prices of China’s silicon 553 have risen and were at $2,025/t CFR Mundra majorly because of high freight rates.
The sea freight fee from China to Mundra is $4,000-$4,200 per container.
ADC12 import offers:
Malaysia to CFR Chennai – $2,560/t
Tanzania to CFR WC – $2,400/t
UAE to CFR Japan – $2,580-2,600/t
Outlook
A major automobile company has announced its ADC12 prices at INR 223/kg for July 2024, marking a m-o-m increase of INR 1,250/kg. This could potentially drive near-term price increases. Looking ahead, as maintenance concludes and auto companies resume operations, prices are likely to experience upward momentum.
