- Trade slows down as bids remain lower than prices
- Quality concerns emerge around recent Zorba imports
India’s imported aluminium scrap prices rose by $50-70/tonne (t) w-o-w, driven by an uptrend in London Metal Exchange (LME) prices. Strong global demand and ongoing supply constraints supported Indian prices, although subdued trading activity limited further gains.
Price assessments
BigMint assessed Tense scrap from the US at $2,040/t, up by $75/t w-o-w, while Wheels from the UK stood at $2,550/t (both CFR west coast), largely stable w-o-w. Meanwhile, other major scrap grades such as Extrusion witnessed a reduction of $10/t w-o-w.
LME prices rise w-o-w
At the time of reporting, LME aluminium prices stood at $2,607/t, up by $41/t w-o-w as compared to $2,566/t last week.
Market insights
A shortage of scrap — both imported and domestic — kept imported aluminium scrap prices firm. Domestic scrap prices were stable due to tight supply and steady demand, and the limited availability of imported scrap also supported elevated levels.
Domestic scrap prices remained flat w-o-w, with ex-Delhi at INR 197,000/t and ex-Chennai at INR 200,000/t, backed by constrained availability and robust local demand.
Although aluminium scrap offers firmed up, bids were comparatively lower, reflecting a notable bid-offer disparity in the market.
Bid-offer gaps in imported grades such as Taint Tabor, Tense, and extrusion ranged between $30-50/t, making negotiations difficult. However, there was significant pushback from buyers when it came to booking. The US market also faced pressure, further intensifying trade uncertainty.
Concerns over scrap quality emerged, with recent Zorba shipments to India reportedly containing copper levels that were either absent or significantly lower than declared. This has raised concerns about mislabelling and inconsistencies in the material.
ADC12 alloy prices in both northern and southern India also held firm, underpinned by stable scrap costs. Market participants expect price stability through August and September, bolstered by improved availability of imported ADC12.
Several leading Malaysian alloy producers have recently obtained BIS certification, while others are in the process of securing the required approvals.
Silicon price trends
According to BigMint’s assessment, silicon 553 prices from China inched up by $20/t w-o-w to $1,370/t CFR Mundra.
Outlook
Aluminium scrap prices in India are expected to remain stable in the near term, supported by persistent supply tightness and steady domestic demand. Improved availability of imported ADC12 and recent BIS approvals for Malaysian alloy producers may ease supply, with bid-offer gaps and cautious buyer sentiment limiting aggressive price gains. Market stability is likely through August-September unless LME trends or global demand shift significantly.
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