India: ADC12 aluminium alloyed ingot prices remain rangebound

Prices of aluminium ADC12 alloyed ingots remained stable w-o-w in both the northern and southern regions of India, largely due to ongoing sluggish demand in the automotive sector and a considerably weakened export market.

Prices of OEM approved ADC12 were at INR 209,000/t ex Delhi and INR 210,000/t ex Chennai, as per last assessments by BigMint.

BigMint's weekly assessments for ADC12 (non-OEM) grade stood at INR 201,000/t in Delhi and INR 203,000/t in Chennai, stable w-o-w.

At the time of reporting, three-month aluminium futures on the LME stood at $2,615/t, rangebound compared to the previous week's levels of around $2,620/t.

The current scrap-to-semi-finished spread stands at INR 28,000-29,000/t, stable w-o-w.

The export market for ADC12 remains weak but has shown slight improvement, with some inquiries from Japanese buyers. ADC12 auto OEM-approved levels are at INR 208-210/kg. Typically, OEM credit prices are INR 1-2/kg lower than major automaker levels, but recently, some alloy manufacturers in south India have sold at INR 210/kg on credit, with north India-based offers also exceeding automaker settlement prices.

For December, OEMs are targeting levels around INR 207,000-208,000/t, while suppliers are quoting INR 209-210/kg.

In the imported market, ADC12 from the UAE is priced at $2,430-2,460/t (CFR Mundra), and A356 from the UAE is at $2,730-2,750/t (CFR Mundra). Reports suggest China is sourcing ADC12 from South Africa at $2,350-2,370/t due to lower price and a 30-day transit period.

Additionally, expectations of higher Japanese premiums may drive up imported A356 ingot prices, as their calculation includes premium additions. Indian ADC12 demand is anticipated to pick up post-January 2025, though current market movement remains limited.

Imported raw material prices stable w-o-w

BigMint's benchmark assessment for Tense scrap originating from the UAE stood at $1,800/tonne (t), firm w-o-w, while Zorba 95/5 from the UK stood at $2,100/t, largely stable w-o-w, both prices CFR west coast, India.

Domestic scrap stable

In the domestic market, Tense scrap prices remained steady w-o-w in both Delhi and Chennai, while other grades witnessed a downtrend. According to BigMint's assessment, domestic tense scrap stood at INR 173,000/t ex-Delhi NCR and INR 174,000/t ex-Chennai.

China's silicon prices edge up

According to BigMint's assessment, prices of China's 553-grade silicon went up by $30/t w-o-w to $1,730/t CFR Mundra. Freights were at around $2,300 for a single container from China to Mundra.