- Despite price dip buyers remain cautious
- Chinese manufacturing slowdown weighs on metals
India’s imported aluminium scrap prices recorded a w-o-w drop of $70-90/tonne (t), mirroring the downtrend in LME aluminium prices amid weaker global cues, market uncertainty and ongoing supply constraints. Meanwhile, buying activity in the market were at low to moderate levels amid price volatility.
BigMint assessed Tense scrap from the US at $1,965/t, down by $90/t w-o-w, while Wheels from the UK stood at $2,550/t (both CFR west coast), down by $50/t w-o-w. Meanwhile, other major scrap grades such as extrusion witnessed minor gains of $5/t w-o-w.
LME prices decline w-o-w
At the time of reporting, LME aluminium prices stood at $2,566/t, down by $44/t w-o-w as compared to $2,610/t last week.
LME aluminium prices declined this week after hitting a four-month high, pressured by growing uncertainty around US tariffs and persistent macroeconomic concerns in China. Manufacturing activity in China contracted for the fourth straight month, dampening market sentiment despite some improvement in demand signals and tight global supply conditions.
Market insights
India’s imported aluminium scrap prices declined w-o-w, but the fall was narrower than anticipated. Despite the dip, prices remained relatively firm, underpinned by persistent global supply shortages. Market participants noted a cautious tone, as the softer drop failed to trigger aggressive buying.
Concerns around scrap quality have also surfaced. Recent Zorba shipments into India reportedly contained copper content that was either missing or significantly lower than declared, raising issues of mislabeling and inconsistency.
Scrap imported from the UAE continued to command stable prices with minimal decline. Strong domestic demand for grades such as TT and extrusion, combined with a local scrap shortage, has kept UAE export prices firm.
Elevated domestic scrap rates in the UAE are also pushing up export values. According to provisional BigMint data, India’s aluminium scrap imports from the UAE rose by 45% y-o-y in H1CY’25, reaching 0.08 mnt, up from 0.05 mnt in H1CY’24.
This growth was largely driven by reduced availability from the US — India’s key supplier — due to the impact of increased tariffs under the Trump-era trade policies.
On the domestic front, aluminium scrap prices remained firm, with no significant drop. Market tightness continues to support price levels.
ADC12 alloy prices in both northern and southern India also held steady, buoyed by consistent scrap costs. Market participants expect prices to remain stable through August and September, supported by improved availability of imported ADC12. Several major Malaysian alloy producers have recently received BIS certification, while others are gradually securing necessary approvals.
Silicon price trends
According to BigMint’s assessment, silicon 553 prices from China dropped significantly by $135/t w-o-w, settling at $1,350/t CFR Mundra.
The decline was driven by weak demand and excess inventories, which forced Chinese sellers to lower offers. Prices are now ranging between $1,340-1,360/t, reflecting a softening market.
Outlook
India’s imported aluminium scrap market is expected to remain range-bound in the near term, supported by tight global supply and steady domestic demand. While uncertainty in global cues and weak Chinese manufacturing may weigh on sentiment, firm UAE exports and improved ADC12 alloy availability from Malaysian producers with BIS certification are likely to lend support. Silicon prices may stay soft due to weak demand and high inventories in China, though further downside appears limited.
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