- LME aluminium prices increase by 3% w-o-w
- Supply from Middle East tightens amid Ramadan
India’s imported aluminium scrap prices increased by up to $70-80/t w-o-w amid shortages of premium grades in the market.
BigMint’s benchmark assessment for Tense scrap originating from the US was at $1,950/tonne (t), increasing by $50/t w-o-w, while Wheels from the UK stood at $2,550/t, up $80/t w-o-w, both CFR west coast, India.
This week, aluminium prices on the London Metal Exchange (LME) increased by 3% to $2,695/t from last week’s $2,613/t. Meanwhile, stocks at LME-registered warehouses stood at 506,200 t, down 3% from 524,500 t last week.
Domestic scrap prices rise w-o-w
In the domestic market, Tense scrap prices in both Delhi and Chennai rose by INR 3,000/t w-o-w. According to BigMint’s assessment, domestic Tense scrap stood at INR 185,000/t ex-Delhi-NCR and INR 185,000/t ex-Chennai.
Market updates – scrap supply tightens
As per a market participant, “alloy manufacturers are currently operating at full capacity, with expectations for prices to rise further. This will increase demand for raw materials, pushing prices and bids higher.”
The recent scrap shortage has caused the price of ADC12 to rise to INR 217,000-220,000/t in both the Delhi and Chennai regions. The increase in ADC12 prices has been primarily driven by a shortage of raw materials, particularly Tense and Taint Tabor.
Aluminium scrap supply from the Middle East is tight due to Ramadan, and the UK/EU is also facing limited availability. On the other hand, market sentiment in India has improved, with demand picking up.
European market also sees squeezed supply
A trader noted, “European aluminium scrap buyers are already facing challenges due to limited supply and strong export demand. The imposition of US tariffs on primary aluminium could exacerbate the situation. If US buyers begin substituting primary aluminium with scrap, it will further reduce the availability of scrap in Europe, potentially pushing some European alloy manufacturers out of business.”
The European secondary aluminium alloy market also faces challenges with tight scrap supply due to strong demand from India and Asia. Primary producers are increasingly turning to high-grade scrap for eco-friendly automotive production.
European scrap merchants are also expanding into the US, shifting from Asia. US buyers will face stiff competition from high prices in India and China, and European recyclers will also find it harder to secure supply.
Chinese market updates
According to BigMint’sassessment, prices of China’s 553-grade silicon increased by $20/t w-o-w to $1,520/t CFR Mundra.
In China, secondary aluminium plant operating rates returned to normal, increasing the supply of finished goods. However, weak downstream demand and accumulating inventory limited the upward momentum of prices. ADC12 prices are expected to fluctuate within a narrow range, supported by higher aluminium scrap costs.
Aluminium scrap prices remain stable, with baled UBC quoted at RMB 14,950-15,800/t ($2,070-2,180/t) and shredded aluminium Tense at RMB 16,350-17,950/t ($2,250-2,490/t). Procurement pressures eased with resumed production.
Outlook
Anticipation surrounds the upcoming price announcement by a leading auto manufacturer for April, which is likely to influence market trends significantly. Market participants expect the positive momentum in prices to continue in the near term.
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