India: ADC12 aluminium alloyed ingot OEM-grade prices remain rangebound

• Japan's ADC12 export market recovers
  
  
• LME aluminium prices rangebound w-o-w
  
  

Prices of OEM aluminium ADC12 alloyed ingots have remained rangebound m-o-m in both north and south India. This price stability is mainly driven by continued weak demand in the automotive sector.

With market participants returning from the New Year holidays, activity has been limited. Prices have stayed rangebound recently, reflecting the persistent sluggish demand in the automotive sector.

India's imports for ADC12 have continued to remain weak due to persistent weak demand in the market.

Meanwhile, three-month London Metal Exchange (LME) aluminium prices declined by $30/t m-o-m to around $2,520/t.

OEM-approved ADC12 prices range-bound

BigMint's weekly assessments for ADC12 (OEM) grade stood at INR 208,000/tonne (t) in Delhi and INR 208,000/t in Chennai, largely stable m-o-m.

According to BigMint sources, "Sellers are offering material below automakers' settlement prices to regular customers to maintain relationships and clear inventory, while offers for new trades remain high, indicating a cautious outlook as sellers aim for higher margins amidst market pressure."

Non-OEM ADC12 prices remain firm

BigMint's weekly assessments for ADC12 (non-OEM) grade stood at INR 202,000/t in Delhi and INR 203,000/t in Chennai, down by INR 2,000/t w-o-w.

Raw material prices edge down

Prices of basic raw material for aluminium alloys, that is scrap, remained largely stable m-o-m. BigMint's assessment for tense scrap originating from the UAE was at $1,790/t, remaining rangebound m-o-m. Meanwhile, zorba 95/5 from the UK dropped by $50/t, stood at $2,060/t, both CFR west coast, India.

As per sources, "Turnings provide a more cost-effective alternative for producing ADC12, offering a price advantage of INR 5,000-6,000/t over tense scrap. This makes it an alternate choice for manufacturers looking to optimise production costs while ensuring the alloy's quality remains consistent."

In the domestic market, tense scrap prices remained stable m-o-m in both Delhi and Chennai. According to BigMint's assessment, domestic tense scrap stood at INR 174,000/t ex-Delhi NCR and INR 175,000/t ex-Chennai.

The scrap to semi-finished spread was at INR 36,000-38,000/t.

ADC12 export offers

The offers for ADC12 from the UAE were heard at $2,380-2,400/t CFR major Japanese port (MJP) and $2,360-2380/t CFR MJP from West Coast, India. However, buying interest remains subdued due to ongoing weak market demand. Despite these price levels, Japan has not been actively procuring material, with only small-volume deals reported. Last week, a 200 t shipment of ADC12 from the UAE to Japan was concluded at $2,380-2,400/t.

Export market

The export market for ADC12 was weak but showed slight improvement, with some inquiries from Japanese buyers. ADC12 prices for Japan were heard at $2360-2380/t.

China's silicon offers remain stable

Prices of China's 553-grade silicon dropped by $30/t w-o-w at $1,650/t CFR Mundra. Meanwhile, offers from the suppliers' side were at $1,680-1,700/t.

Outlook

Market activity is expected to pick up as participants return from the holidays and recovery in export markets, with rising demand likely driving price increases in the coming weeks.