India: ADC12 aluminium alloy ingot prices edge up following LME surge
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Spot prices of aluminium ADC12 alloy ingots (non-OEM) in Delhi NCR and Chennai increased by INR 1,000/t w-o-w, according to BigMint's latest assessment. In Delhi-NCR, ADC12 spot prices were assessed at INR 208,000/t ex-Delhi, aligning with domestic tense scrap prices, which settled at INR 176,000/t ex-Delhi.
In Chennai, ADC12 prices were reported at INR 210,000/t on an immediate payment basis, excluding GST. Casting scrap prices in Chennai were at INR 177,000/t ex-Chennai.
The current spread between tense and ADC12 spot levels stood at INR 32,000-33,000/t. Meanwhile, three-month LME aluminium prices hovered around $2,470-2,480/t, up 6% w-o-w. Stocks at LME-registered warehouses totalled 885,400 t. Aluminium prices have rebounded after previously reaching three-month lows.
Rising scrap, LME futures prices drive up ADC12 alloy ingot costs
The tight availability of raw materials, coupled with rising scrap prices and the LME surge, has driven up the cost of ADC12 alloy ingots. Despite a price cut by India's top automobile manufacturer for September 2024, market pressure has resulted in more favourable pricing for sellers.
A seller commented, "The market is currently seeing a resurgence in trade activities, with increased buying interest and some transactions occurring. However, India's exports of alloy ingots remain subdued due to weak overseas demand, particularly from Japan, a key market for Indian exports."
A manufacturer said, "Freight rates from Malaysia to Chennai are currently $2,500-3,000 per 20-feet container. However, securing a spot container from Malaysia has become challenging, with a waiting period of at least a month. Inquiries for UAE ADC12 have surged, with around 1,500 t concluded since last week at $2,350-2,360/t from Pune."
Additionally, orders for 1,000-1,500 t have been recorded for the coming weeks. Freight rates from Jebel Ali to the West Coast of India are nearly free at $10 per 20-feet container, while the rate to Chennai is $100 per 20-feet container.
Global price trend
According to BigMint's assessment, tense scrap from the Middle East, particularly the UAE, saw a increase of $50/t, settling at $1,780/t. Zorba 95/5 from the UK was up by $50/t to $2,000/t CFR west coast, India.
Pakistan alloy aluminium ingot with high zinc 4% to 5% $2,140/t CFR Port Ningbo.
Pakistan off grade ADC12 sold at $2,180/t CFR Port Ningbo.
ADC12 offers from Malaysia, stood at $2,500/t CFR Chennai.
ADC12 offers from Malaysia, CFR West Coast India were at $2,530-2,540/t.
UAE, CFR Japan $2,380-2,390/t, though buyer interest remains very weak with bid levels at $2,300-2,320/t or even lower.
Freight rates from Malaysia to Chennai are ranging between $2,500 and $3,000 for a 20-ft container.
China's silicon market overview
Prices of China's silicon 553 remained firm at $1,740/t CFR Mundra amid easing freight rates.
Additionally, the freight rates from China to Mundra were heard at $1,700-$1,710/20-feet container.
Domestic scrap market
In the domestic market, tense scrap prices edged up w-o-w in both Delhi and Chennai. According to BigMint's assessment, domestic tense scrap prices are now at INR 176,000/t ex-Delhi NCR and INR 177,000/t ex-Chennai. Market participants expect prices to move up in the near term.
Deals
UAE Taint tabor clean traded at $2,150/t CFR Mundra.
UAE extrusion traded at $2,330/t CFR Mundra.
UK origin Zorba 95-5 traded at $2,020/t CFR Mundra.
Taint tabor c/s 5-7% UK traded at $1,750/t CFR Mundra.
Outlook
The market is expected to remain around current levels, closely following LME trends, with a potential for prices to edge higher. Trading activity has resumed and is anticipated to increase if the LME prices continue to rise.
