- Imported aluminium scrap prices rose $20-30/t
- LME gains and demand support price uptrend
India’s imported aluminium scrap prices inched up w-o-w, supported by an uptrend in LME levels, strong global demand and ongoing supply constraints.
BigMint assessed Tense scrap from the US at $2,050/t, up by $30/t w-o-w, while Wheels from the UK stood at $2,580/t, up by $5/t w-o-w, both CFR west coast, India.
At the time of reporting, London Metal Exchange (LME) aluminium prices stood at $2,600/t, up by $14/t w-o-w as compared to $2,586/t last week.
Market insights
Aluminium scrap prices remain firm amid a widening gap between offers and buyer bids. Buyers are holding back on new purchases, citing continued price volatility. Limited availability of imported scrap is keeping prices elevated, while domestic scrap rates are also on an upward trajectory.
A bid-offer disparity of $30-50/t has been observed in certain imported scrap grades, such as Taint Tabor and extrusion.
In Chennai, domestic Tense scrap prices remained at INR 200,000/t (ex-Chennai), supported by limited supply and strengthening local demand.
In the semi-finished segment, ADC12 prices remain firm across both northern and southern regions, supported by strong domestic and imported scrap prices. Ongoing raw material shortages are likely to add further pressure, driving prices higher across regions.
BigMint’s ADC12 (OEM approved) settlements for July were at INR 232,000/t in Delhi and at INR 234,000/t in Chennai.
Market participants expect India’s leading automaker to settle August 2025 contracts at INR 230,000-232,000/t, pending official confirmation.
Other updates
UAE-based Emirates Global Aluminium (EGA) has begun production at its expanded Spectro Alloys recycling facility in Rosemount, Minnesota. In the initial phase, the plant will produce 55,000 t of secondary aluminium billets, with full capacity of 165,000 tonnes per year (t/year) of recycled ingots and billets expected by Q1 2026 following a $71 million expansion.
Looking ahead, EGA is eyeing further US growth with a proposed $4 billion primary aluminium plant in Oklahoma, projected to produce 600,000 t/year upon completion.
Additionally, domestic aluminium scrap consumption in the UAE is expected to increase with the commissioning of new mills. Consequently, scrap exports from the UAE may decline. Some Middle Eastern countries are also said to be considering export restrictions on scrap due to growing domestic demand across the region.
Silicon price trends
According to BigMint’s assessment, silicon 553 prices from China remained largely stable w-o-w at $1,315/t CFR Mundra.
Outlook
Aluminium scrap prices in India are likely to stay firm in the near term, supported by strong global demand, supply tightness, and steady gains in global exchange levels. Despite cautious buying amid price volatility and noticeable bid-offer gaps in imported scrap grades, market sentiment remains firm with a slight upward bias.
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