Imported aluminium scrap prices in India drifted up w-o-w amid the rise in LME prices. Prices of all grades inched up by up to 6% this week amidst resumed purchase enquiries.
Meanwhile, the three-month LME aluminium prices hovered at $2,540-2,550/t up 2.3% w-o-w. Stocks at LME-registered warehouses stood at 870,950 t. Aluminium prices continue to go up after hovering at three-month lows.
As the market reopened after local holidays, a significant bid-offer disparity became apparent. While prices for major domestic scrap materials stayed within a tight range, imported prices moved up, reflecting the movement in the LME. Notably, wheels and Taint tabor are currently facing a bid-offer gap of $100-120/t.
A source mentioned, ” A few plants are running at 50-60% capacity as demand for finished material remains slow during monsoon. It is expected to remain on the lower side till Diwali.”
Also, aluminium talk shredders have slowed down their work and most of the imported talk material is being consumed by the western region of the country.
Currently, Dammam TT offers are at $2,120-2,130/t, and UAE prices are estimated to be at around $2,150-2,160/t. Market clarity is pending. Additionally, alloy manufacturers are increasingly focusing on importing alloy ingots directly, given the rising volatility in scrap prices.
According to BigMint’s assessment, tense scrap from the Middle East, particularly the UAE, saw a increase of $60/t, settling at $1,815/t. Zorba 95/5 from the UK was up by $20/t at $2,020/t CFR west coast, India. TT Shredded clean traded at $2180/t CFR Mundra.
A group of Indian port workers’ unions has called for a strike from August 28 to demand immediate settlement of pay revisions and pension benefits which can lead to further delayed shipments, which have a global impact on trade, as per reports.
India’s aluminium scrap arrivals rise in July
In July 2024, India’s aluminium scrap imports rose by 2.4% compared to the previous month to 171,604 t, However, imports were up by 4% compared to the same period last year, according to provisional data from BigMint.
China: Aluminium scrap imports drop
China’s aluminium scrap imports stood at 135,569 tonnes (t) in Jul’24 marking a drop of 3% compared to 140,397 t in Jun’24. However, imports increased by 12% y-o-y, reaching 1,085,779 t in Jan-Jul’24 from 969,804 t in the same period of last year.
China’s silicon market overview
Prices of China’s silicon 553 edged down to $1,720/t CFR Mundra amid easing freight rates.
Additionally, the freight rates from China to Mundra were heard at $1,600-$1,610/20-foot container.
Domestic scrap market
In the domestic market, tense scrap prices edged up w-o-w in both Delhi and Chennai. According to BigMint’s assessment, domestic tense scrap prices are now at INR 177,000/t ex-Delhi NCR and INR 178,000/t ex-Chennai. Market participants expect prices to move up in the near term.
Outlook
The market is likely to stay at around current levels, following the LME, with a potential for prices to edge higher. However, trading activity remains subdued as many participants are still in holiday mode.
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