India: Imported aluminium scrap remains supportive amid bid-offer disparity

India’s imported aluminium scrap prices remained largely supportive in line with strengthening of major commodity exchanges like the London Metal Exchange (LME) and Commodity Exchange Inc (COMEX) w-o-w.

However, trade channels saw minor bid-offer disparity exhibited in the market. Buying activity slightly shifted to local procurement. Buyers preferred procuring locally amid the liquidity crisis arising from the turmoil in some overseas banks.

Additionally, the ongoing Ramadan observance impacted market activities. Specifically, Middle East sales remained dull where the shipment period might get delayed by up to 45-50 days amid limited working hours.

Buyers in India’s aluminium market are witnessing lower demand for the material because of the approaching financial year end. Market participants expect demand to recover in mid-April.

“Price volatility in specific scrap grades varied by as much as $40-50/t within the same region as against the previous level of $20-30/t,” said traders hailing from the Middle East.

Taint tabor scrap and extrusion clean briquette were hovering at $1,900-1,920/t and $2,170-2,190/t CIF from the Middle East in 20-feet containers to West Coast India. Zinc diecast with 4-5% attachment from the same origin was at $2,160-2,170/t CIF West Coast India.

On the other hand, in China, despite a slight recovery on the production side, domestic aluminium ingots inventory continued to fall as consumption picked up. In the near term aluminium prices may go up, driven by an improved buying.

Notably, China’s refined aluminium production from January-February, 2023 stood at 3.37 million tonne (mnt), which increased by 6.5% y-o-y.

SteelMint’s assessment

• Aluminium taint tabor of Middle East-origin was offered at $1,910/t CFR Nhava Sheva, up by $70/t w-o-w.
• US-origin aluminium tense scrap prices were assessed at $1,770/t CFR Nhava Sheva, up by $30/t w-o-w.

LME trend

Three-month aluminium futures and spot prices on the LME increased by $97/t w-o-w to $2,363/t yesterday from $2,266/t on 21 March. Aluminium stocks were estimated at 527,875 t, down from 541,875 t last week.