- Middle East market remains strong
- High offers, subdued buying activity
Imported aluminium scrap prices in India remained on the higher side w-o-w, with some fluctuations of up to $20-30/t seen.
BigMint’s benchmark assessment for Tense scrap originating from the US was at $1,900/tonne (t), increasing by $30/t w-o-w, while Wheels from the UK stood at $2,490/t, up $35/t w-o-w, both CFR west coast, India.
This week, LME prices remained stable w-o-w at $2,639/t. Meanwhile, stocks at LME-registered warehouses stood at 535,900 t, down 2% from 547,950 t last week.
LME prices recently reached $2,700/t, which is a one-month high. However, buying activity was subdued as buyers adopted a wait-and-watch approach and only need-based buying was seen.
According to a market participant, “Zorba is achieving better realisations in the Far East market i.e up to $70-80/t, but it remains unviable in the Indian market. Bids remain lower at $2,050/t”. BigMint assessed Aluminuim Zorba 95-5 prices at $2,115/t.
Additionally, imported tense prices are not matching with trade levels and bid-offer disparity has emerged.
An overseas trader source mentioned, “In the Middle East, the market remained strong with higher prices. However, due to high demand, they are selling Taint Tabor and Extrusion 6063 to India even at high offers to a few buyers.” Additionally, imported tense prices are not matching with trade levels.
A trader mentioned that the local aluminium raw material market is facing a shortage, leading to higher ADC12 offers. As a result, buying activity has decreased due to elevated prices.
Extrusion 6063 demand remains on high, with deals heard at INR 220,000/t ex-Gujarat, while offers were heard at INR 240,000/t.
In the used beverage cans (UBC) scrap segment, other countries such as Korea are offering better prices at around $1,900/t; however, with a primary player heard coming up with a new UBC plant in Odisha, demand has gone up significantly, and currently there is reported shortage of UBC clean material in the market.
According to latest data from the International Aluminium Institute (IAI), global aluminium production fell by 9.2% to 5.65 mnt in January, down from 6.23 mnt in December. Notably, China’s output rose slightly to 3.74 mnt, up 0.5% from the previous month. Y-o-y, production fell by 7.2% from 6.08 mnt in January 2024.
Domestic scrap prices rise w-o-w
In the domestic market, Tense scrap prices in both Delhi and Chennai rose by INR 2,000/t w-o-w. According to BigMint’s assessment, domestic Tense scrap stood at INR 179,000/t ex-Delhi-NCR and INR 180,000/t ex-Chennai.
China’s silicon prices up w-o-w
According to BigMint’s assessment, prices of China’s 553-grade silicon increased by $10/t w-o-w to $1,540/t CFR Mundra. Due to weak demand in the Indian market, silicon offers remained on the higher side, ranging between $1,600-1,630/t.
Outlook
Buyers have adopted a wait-and-watch approach due to high future prices, but demand stays strong in the local market. Material shortage for certain grades persist, suggesting that imported prices may remain elevated.
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