India: Imported aluminium scrap prices rise w-o-w on supply tightness

• LME fluctuations makes sellers cautious
• Domestic scrap prices up by INR 5,000/t

India’s imported aluminium scrap prices rose by up to $50-60/t w-o-w, supported by a tightening supply of raw materials in the global market because of fluctuating LME prices which is making sellers cautious.

BigMint’s latest assessments indicate that Tense scrap from the US stood at $1,930/t, while Wheels from the UK remained stable at $2,450/t, both on a CFR west coast India basis.

On the London Metal Exchange (LME), aluminium prices remained largely range-bound, with the benchmark price averaging $2,465/t, down 4% from $2,375/t last week. Meanwhile, LME-registered warehouse inventories dipped by 10% to 419,575 t, up from 462,450 t in the previous week.

Domestic scrap prices up w-o-w

In the domestic market, Tense scrap prices in both Delhi and Chennai inched up by INR 5,000/t compared to last week. According to BigMint’s assessment, domestic Tense scrap stood at INR 192,000/t ex-Delhi-NCR and INR 193,000/t ex-Chennai.

Market sentiments

According to market participants, “Demand remains strong, but buyers are hesitant due to elevated offers. The recent US tariffs have further boosted domestic demand in the US, resulting in a supply crunch for other countries. Additionally, due to LME fluctuations, bid-offer disparities of up to $80/t have been observed, adding to overall market uncertainty”

A trader informed that UAE-origin extrusion 6063 is being offered at a premium of around $2,500-2,510/t. However, these prices are considered unworkable by buyers, who are instead bidding at $2,440-2,450/t.

Other updates

China’s aluminium scrap imports fell 1% y-o-y in March 2025 as secondary producers delayed purchases amid fewer orders and high secondary aluminium prices. Imports from Malaysia plunged 70%, while Thailand’s shipments more than doubled, making it China’s top supplier.

Despite March’s dip, total Q1 imports rose 7% after China eased restrictions on scrap for secondary aluminium in late 2024. However, negative arbitrage on primary aluminium imports raised costs for scrap buyers, turning the market cautious.

Outlook

Market participants remain cautious and are awaiting further updates on scrap collection prices, as strong demand persists amid ongoing supply tightness and uncertainty in LME aluminium price trends.