The Indian imported aluminium scrap market has experienced a varied trend influenced by several factors such as declining futures, heightened freight rates, and bid-offer disparities, coupled with subdued demand. Market participants are cautiously conducting moderate transactions to sustain day-to-day operational activities.
As per the SteelMint’s benchmark assessment, Zorba 95-5, UK-origin, has remained relatively stable w-o-w at $1,970/t. Meanwhile, scrap prices from the Middle East have seen a modest increase of $20/t w-o-w, currently standing at $1,660/t.
The recent uptick in copper’s three-month LME cash prices has impacted talk scrap prices from the US which is hovering around 53% of LME, resulting in a $30/t increase. Presently, copper LME prices hovered around $8,402/t.
A trader highlighted that demand for aluminium Tense scrap is robust in the Indian market, but there is a slight shortage of material.
An indentor reported limited material availability in their yards, with a significant portion being redirected to other Asian countries due to higher rates deemed unworkable for India.
The freight charges from western countries have risen, discouraging buyers from booking material at elevated rates. Additionally, a buyer shared concerns about a $40-50/t disparity among various grades of aluminium scrap, shared by a market source.
Major OEMs are not actively bidding for material as they already possess sufficient stock, contributing to a sluggish pace in finish aluminum sales and purchases within the nation.
Simultaneously, the three-month futures for aluminium are at $2,180/t which fell by $40/t w-o-w, in contrast the copper LME prices increased by around $25/t and stood at $8,385/t. Aluminium inventories in LME warehouses closed at 550,825 t.
Furthermore, China-origin silicon 553 is at around $2,140/t, CIF Mundra.
Domestic aluminium
In the domestic market, there is heightened demand for scrap, but the supply remains limited. Tense scrap prices are at INR 160,000/t, while utensil scrap prices are at INR 165,500/t ex-Delhi (excluding GST).
Outlook
Looking ahead, the market is expected to remain volatile, with the domestic market moving at a slow pace and anticipation of Tense scrap prices to increase due to limited supply.
