- Holiday-led inactivity slows spot market participation
- Secondary producers face procurement pressure amid tight supply
India’s imported aluminium scrap prices increased w-o-w as of 5 May 2026, supported by a marginal uptick in three-month aluminium prices on the London Metal Exchange (LME) and continued tightness in global scrap availability.
According to BigMint’s latest assessment for CFR Nhava Sheva deliveries, UK-origin zorba 95-5 scrap rose by $90/t w-o-w to $2,965/t, reflecting improved trade activity. Similarly, US-origin tense 6-7% scrap increased by $20/t w-o-w to $2,760/t.
LME aluminium edges down w-o-w
Three-month aluminium prices on the London Metal Exchange (LME) edged up slightly w-o-w, currently trading at $3,565/t, up by $28/t from $3,537/t on 28 April 2026. Prices rose to $3,556/t on 29 April before showing further gains in recent sessions.
Meanwhile, aluminium inventories on the exchange decreased by 5,550 t to 364,725 t from 370,275 t over the same period, indicating a continued drawdown in stocks.
Market scenario
Market sentiment in India’s imported aluminium scrap segment remains firm despite strengthening prices on the London Metal Exchange (LME). Scrap prices have recorded w-o-w movement; however, the pass-through of higher LME levels into imported scrap valuations has been limited, keeping volatility elevated and sentiment cautious.
Trading activity was further impacted by the LME holiday on 4 May due to the UK Early May Bank Holiday, along with Labour Day in China, resulting in subdued participation. Buying interest continues to remain weak, as most market participants are postponing fresh procurement amid expectations of further price corrections and ongoing uncertainty around LME direction.
Overall trading activity across regions remains limited, reflecting a wait-and-watch approach. Some of the reported deals include Saudi extrusion 6063 at $3,320-3,350/t, taint tabor around $2,950/t, US-origin zorba (via Australia) above $3,000/t, and zorba 95/5 (UK origin) at around $2,950/t CIF Nhava Sheva, with transactions reported at $2,975/t.
On the domestic front, aluminium prices continue to remain firm, while the scrap market is tight across both northern and southern regions, particularly for casting-grade Tense scrap, due to acute supply constraints. Secondary producers are facing ongoing procurement challenges, which has led to cautious buying behaviour and relatively subdued operating rates across the industry.
Chinese silicon prices
According to BigMint, China-origin silicon metal 553 prices remained stable w-o-w at $1,350/t on a CFR Mundra basis amid muted activity due to the May Day holiday in China.
Outlook
Imported aluminium scrap prices in India are likely to remain firm in the near term. While LME strength and tight global and domestic scrap availability will support prices, cautious buying and limited market participation may cap any sharp upside. Downside risks are expected to remain limited due to ongoing supply constraints.
Leave a Reply