India: ADC12 aluminium alloyed ingot prices remain stable w-o-w ahead of festive break

Domestic spot prices of aluminium ADC12 alloyed ingots remained almost stable w-o-w in both the northern and southern regions of the country pressured by weak demand and stable domestic raw material costs.

BigMint's benchmark assessments for ADC12 (non-OEM) grade stood at INR 202,000/tonne (t) in Delhi and INR 204,000/t in Chennai, stable w-o-w.

Meanwhile, three-month London Metal Exchange (LME) aluminium prices hovered at around $2,650/t, rangebound w-o-w. Stocks at LME-registered warehouses stood at 743,700 t.

Market remains subdued

Prices for domestic aluminum ADC12 alloyed ingots remained stable amid the festive season in India, with market activity slowing down as operations remain partially closed and demand subdued.

Additionally, overseas demand, particularly from Japan, India's largest export market for ADC12, has yet to recover. Consequently, alloyed ingots are largely being directed to the domestic market, leading to an oversupply amid weak demand.

In contrast, China's demand for ADC12 is strong, with imports primarily sourced from Thailand due to a free trade agreement (FTA).

Imported scrap trends

Imported aluminium scrap prices in India remained fell slightly w-o-w. Although buying interest was weak, bid-offer disparity was seen despite rangebound levels in LME aluminium prices.

BigMint's benchmark assessment for tense scrap originating from the UAE was at $1,770/t, slightly lower w-o-w, and for zorba 95/5 from the UK at $2,070/t, both CFR west coast, India.

China's silicon market

According to BigMint's assessment, prices of China's silicon 553 remained rangebound w-o-w at $1,730/t CFR Mundra. Meanwhile, offers from suppliers were at $1,740-1,750/t. However, bids were heard at the lower end, at $1,710-1,720/t.

Domestic scrap prices firm

In the domestic market, tense scrap prices remained firm w-o-w in both Delhi and Chennai. According to BigMint's assessment, domestic tense scrap prices stood at INR 172,000/t ex-Delhi NCR and INR 173,000/t ex-Chennai.

Despite a slight increase in offers for domestic casting scrap in both the northern and southern regions, workable prices remained at INR 170,000-172,000/t in both Delhi and Chennai.

Outlook

In the near term, ADC12 prices are anticipated to stay stable during the Diwali break, with holiday season closures slowing market activity. However, prices could rise afterwards, supported by increasing LME prices amid alumina shortage and potential boost in demand post holidays.