- LME volatility, robust global demand influencing prices
- US, EU export offer higher amid good domestic demand
India’s imported aluminium scrap prices exhibited mixed trends w-o-w, influenced by robust global demand, fluctuating LME prices, and ongoing supply constraints.
The prevailing supply tightness is primarily driven by elevated export offers from major suppliers such as the US and the EU. These regions are quoting higher prices due to strong domestic demand, which has limited the availability of scrap for export and contributed to the firmness in international market rates.
BigMint assessed Tense scrap from the US at $1,970/t up by $20/t w-o-w, while Wheels from the UK were up by $25/t w-o-w to $2,475/t, both CFR west coast, India. At the time of reporting, LME aluminuim prices stood at $2,452/t.
Market sentiments
The domestic market continues to display strength, supported by robust demand particularly for aluminium wires with 99% purity, which remain highly sought after.
Despite higher attachments, material such as Tense scrap is being imported from West Africa to India due to a prevailing shortage in the domestic market. The supply gap is prompting buyers to source from overseas, even when the imported scrap contains higher levels of attachments.
Despite the recent drop in scrap prices, the offers remained on the higher side. This firm sentiment is largely driven by persistent supply shortages and strong demand, with suppliers unwilling to lower their prices even as LME aluminium levels have softened
Additionally, Taint Tabor, extrusion from the Middle East were transacted at premium prices.
In FY’25, India’s aluminium scrap imports rose 3.8% to 1.83 million tonnes (mnt), reflecting not just recovering demand but key structural changes. Volatile LME prices and reduced shipping congestion, especially from South America and the UAE, made imports more cost-effective and supply chains more efficient.
Silicon price trends
According to BigMint’s assessment, silicon 553 prices from China dropped by $10/t to $1,310/t CFR Mundra on a w-o-w basis.
Other updates
Emirates Global Aluminium (EGA) will invest $4 billion to build a 600,000 t/annum primary aluminium smelter in Oklahoma, targeting production by 2030. Separately, EGA and China’s Sunstone will establish a 300,000 t/annum anode plant in Abu Dhabi’s Khalifa Economic Zone, with construction starting in 2026. These projects aim to boost local production and strengthen global supply chains.
Hydro has announced the closure of its Birtley extrusion plant in the United Kingdom by the end of May 2025, citing challenging market conditions. Approximately 100 employees will be made redundant, with support and alternative employment opportunities provided where possible. Production and customer operations will be transferred to Hydro’s Tibshelf and Cheltenham facilities, consolidating operations to ensure a more sustainable presence in the UK market.
Outlook
In the near term, the persistent shortage in essential scrap grades for alloy production is keeping offers elevated. As a result, prices remain volatile and have not softened as much as buyers expected, indicating ongoing supply tightness and a bullish market outlook.
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