Imported aluminium scrap prices in India experienced an uptick this week, supported by the upward trend in LME futures prices by about $50/t w-o-w at $2600/t.
At the time of reporting, the three-month LME price was approximately at $2,600/t, reflecting a 2.5% increase compared to the previous week’s $2,550/t. Stocks were recorded at 500,000 t, marking an 3.4% decrease w-o-w.
Moreover, aluminum prices on the commodity exchange market experienced an increase during the week, attributed to the sanctions imposed by the US and UK on Russian metals coupled with sentiments of supply chain disruption due to war. Notably, Russia is one of the world’s leading producers in this sector.
According to assessments by BigMint, aluminium imported scrap prices in India have risen by up to 2.9%, aligning with the upward trend in aluminium futures. Tense scrap from the USA rose by $20/t to reach $2,000/t, while zorba 95/5, of UK origin, moved up by $60/t settling at $2,160/t CFR Mundra.
A key Indian automotive company revealed its monthly settlement price for ADC12, raising it by INR 5,000/t to INR 217,800/t for May. However, market participants suggest this increase happened due to consistently higher raw material prices in the domestic market but OEM prices are supposed to be reasonably higher in comparison to the spot market, as the OEM’s rates appear to be less aggressive compared to current market dynamics.
Market sources shared that “there’s a shortage of Wheels, Taint tabor, and Tense. There’s also a slight material shortage from the Middle East, which is pushing prices up. Buyers aren’t keen on purchasing material right now; the market seems quite volatile, and people are adopting a wait-and-see approach. However, it doesn’t seem like the market will stabilize soon due to the shortages and geopolitical tension”
BigMint’s assessment for wheels stood at $2,450/t CFR Mundra, up by $40/t from the previous week.
The UK and US bans on Russian metal have caused price fluctuations, leading to diverse perspectives on the stability of the supply chain in the market.
China’s silicon market improves
As per BigMint’s assessment, prices of China’s silicon 553 gained $30/t, settling at $1,880/t CFR Mundra.
Additionally, the tentative export prices (FOB) for silicon 441-grade stood at $1,880-$1,920/t and 553-grade stood at $1,800-$1,850/t.
Domestic scrap market moves up
BigMint’s assessment for tense scrap in the domestic market stood at INR 192,000/t. This reflects a slight increase of 3.2% from the previous week’s INR 186,000/t, ex-Delhi. However, some scrap suppliers are currently offering tense scrap at a premium rate of INR 3,000-4,000/t in Delhi NCR market.
Offers and deals
EU origin Zorba 95-5 was currently traded at $2180 to CIF Mundra – 100 t.
Aluminium Extrusion 1% Australia origin traded at 92.5% LME CIF Chennai- 300 t.
Tense USA 5% traded at $2,050 traded CIF Chennai – 100 t.
Zorba 95-5 offers from Australia to Hong Kong stands nearly $2,175/t.
Zorba 95- 5 Japan origin offers hovers at $2,150-2,160 CIF Chennai.
Taint Tabors 2-3% for US origin: $2,050/t CIF Chennai.
Taint tabor 5-7% for EU origin: $1,930/t CIF Chennai.
Taint tabor 5% HRB for US origin: $1,975/t CIF Chennai.
Extrusion UK/EU 5% HRB: $2,070-$2,080/t CIF Chennai.
Outlook
Aluminum scrap prices are predicted to keep inching up in the near term because of limited supply in few specific grades amid ongoing geopolitical tensions, and possible impact from changes in aluminum LME prices.