- Aluminium tags surge on US tariff impact
- LME aluminium edges up by 0.6% w-o-w
Imported aluminium scrap prices in India rose w-o-w, driven by a shortage in the local market. This scarcity also pushed up prices of semi-finished aluminium products.
BigMint’s benchmark assessment for Tense scrap originating from the US was at $1,865/tonne (t), increasing by $15/t w-o-w, while Wheels from the UK stood at $2,455/t, down $35/t w-o-w, both CFR west coast, India.
This week, London Metal Exchange (LME) prices rose slightly by 0.6% w-o-w to $2,640/t. Meanwhile, stocks at LME-registered warehouses stood at 563,200 t, falling by around 3% against 581,200 t last week.
According to industry sources, aluminium prices surged following the recent US tariff announcement and a material shortage in local markets. Presently, alloyed ingot manufacturers are facing significantly higher raw material costs, leading to financial strain for some producers.
Strong local demand in the US and the Middle East drove up scrap export offers, prompting semi-finished manufacturers to explore alternative, cost-effective materials for their products in an effort to minimise losses and protect margins.
Additionally, sources indicate a sharp rise in India’s demand for materials such as Chrome Wheels, Truck Wheels, and 95/5 Extrusions, which are primarily sourced from the US and Canada. This trend is expected to accelerate following the tariff announcement.
Domestic scrap prices rise w-o-w
In the domestic market, Tense scrap prices in both Delhi and Chennai rose by INR 1,000/t w-o-w. According to BigMint’s assessment, domestic Tense scrap stood at INR 176,000/t ex-Delhi-NCR and INR 177,000/t ex-Chennai.
China’s silicon prices drop w-o-w
According to BigMint’s assessment, prices of China’s 553-grade silicon declined by $10/t w-o-w to $1,520/t CFR Mundra. However, some sellers offered material at over $1,540-1,560/t.
Recent deals
- Extrusion from Australia sold at 93% LME CIF Chennai.
- Wheels from Australia sold at LME – $180/t CIF Chennai.
- Tense 2% from Australia sold at $1,960/t CIF Chennai.
- Taint Tabor from UAE sold at $2,240/t CIF west coast of India.
- Extrusion 6063 from UAE sold at $2,500/t CIF west coast, India.
- Tense 8-9% from UAE sold at $1,815/t CIF west coast, India.
- Talk from UAE sold at 51% LME CIF west coast, India.
Global updates
LME aluminium prices hold firm w-o-w near 3-week high
LME aluminium prices remained firm w-o-w at US $2,657.5/t, near a three-week high, as trade war concerns escalated due to US tariffs on steel and aluminium. US President Trump’s 25% tariff on imports could boost US Midwest premiums, shifting aluminium purchases from Canada to the Middle East, while Canada may increase exports to Europe.
China’s aluminium production hits record high in 2024
In 2024, aluminium production in China reached a record 44 mnt, nearing the government-imposed cap of 45 mnt set in 2017. This cap was put in place to curb excess supply and support the country’s carbon emissions reduction targets.
Outlook
In the near term, Indian market participants will remain cautious due to rising scrap costs.
In the US, strong demand for aluminium scrap may lead semi-finished manufacturers to raise bids, potentially impacting their production costs and domestic market stability. Presently, prices hold steady amid US tariff concerns, but the outlook remains uncertain.
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