- Suppliers delayed revised price announcements
- Market adopted cautious wait-and-see approach
India’s imported aluminium scrap prices fell w-o-w aligning with the correction seen on LME. Meanwhile, domestic scrap prices held largely steady amid tight domestic supply.
BigMint assessed Middle East-origin Tense (8-9%) at $1,965/tonne (t), down $35/t w-o-w, whereas Extrusion 6063 edged down by $35/t to $2,865/t, though demand for these grades remained firm.
LME aluminium prices ease
LME aluminium three-month prices fell by 2% w-o-w to $3,118/t from $3,172/t on 27 January 2026. Meanwhile, LME aluminium inventories witnessed outflow by 1% or 5,075 t from 502,250 t to 497,175 t.
LME aluminium fell w-o-w as volatility intensified and risk-off sentiment swept through markets. A sharp pickup in panic selling, driven by declines in precious metals and fading expectations for near-term macro interest-rate cuts, weighed heavily on the non-ferrous complex. The pressure was compounded by a roughly 1% single-day surge in the US dollar index, which further strengthened headwinds for dollar-denominated commodities, dragging aluminium prices lower.
Market insights
Following the sudden correction in LME aluminium prices, the market turned largely inactive, with barely any offers circulating. Most market participants indicated that they had not heard any fresh bids or new orders from the supplier side and were adopting a cautious stance while awaiting clearer direction and updated offers.
Market participants further commented that although prices appear to have adjusted, suppliers have yet to release revised or corrected offers in response to the recent LME move. Several sources noted that no fresh prices have been heard since the sharp decline in LME aluminium, leaving the market firmly in a wait-and-see mode. Others added that price updates could emerge as early as tomorrow, once suppliers complete their reassessment of price levels following the latest market volatility.
Meanwhile, despite the decline in LME aluminium prices and imported scrap values, domestic scrap prices remained largely firm, with only limited corrections observed across grades. This resilience was primarily attributed to a persistent shortage of domestic scrap, particularly tense scrap grades used by ADC12 producers. Tense scrap continued to trade at premiums in the domestic market, underpinned by restricted availability and sustained demand from secondary producers.
Chinese silicon prices
According to BigMint, China-origin silicon metal 553 prices stood stable w-o-w at $1,360/t on a CFR Nhava Sheva basis, supported by firm demand from aluminium alloy producers.
Outlook
Despite the sharp correction in LME aluminium prices, scrap prices are expected to remain largely firm in the near term, with limited downside. Market participants anticipate stability amid extreme LME volatility, currency fluctuations, and persistent tightness in domestic scrap availability. Firm demand from secondary producers is likely to continue supporting scrap prices despite broader macro uncertainty.
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