India: Aluminium ADC12 alloy ingot prices remain in fixed trajectory w-o-w

Spot prices of aluminium ADC12 alloyed ingots in the domestic market remained rangebound w-o-w in both the northern and southern regions of the country, pressured by week demand and stable domestic raw material costs.

BigMint's benchmark assessments for ADC12 (non-OEM) grade stood at INR 207,000/tonne (t) in Delhi and INR 209,000/t in Chennai, showing minimal change w-o-w.

Meanwhile, three-month London Metal Exchange (LME) aluminium prices hovered around $2,670/t, up $60/t w-o-w. Stocks at LME-registered warehouses stood at 787,950 t.

Steady prices amid subdued demand

A producer informed BigMint, "Despite the w-o-w rise in futures prices, the stability of ADC12 prices is attributed to weak demand and high inventory levels in the automobile sector, which have limited aggressive buying and put downward pressure on prices."

A manufacturer source said, "Prices are not rising because of abundant supply in the market. With Indian exports underperforming, excess material is being diverted to the domestic market, creating oversupply and driving prices down."

Japan's imports of secondary aluminium alloy ingots (ADC12) dropped 5% in August 2024 compared to the previous month, totalling 90,895 t.

A trader source said: "Locally, suppliers are offering raw materials at a discount of INR 1,000-2,000/t to maintain liquidity amid lower demand."

Additionally, the spread between tense scrap and ADC12 spot prices was in the range of INR 32,000-33,000/t.

Imported scrap trend

Imported aluminium scrap prices in India drifted higher w-o-w by up to 2% amid a rise in LME aluminium prices following the Federal Reserve's rate cuts and China's new monetary stimulus and support for the property market.

BigMint's benchmark assessments showed that tense from the UAE was priced at $1,830/t, up by 1.7% w-o-w, while zorba 95/5 from the UK was assessed at $2,090/t, both CFR West Coast, India.

Pakistan market overview

In Pakistan, Off grade ADC12 is currently priced at $2,350/t CFR Port Ningbo, while alloy aluminium ingot with a high zinc content (4% to 5%) is priced between $2,290/t and $2,300/t CFR Port Ningbo, up by $70/t w-o-w.

China's silicon market

According to BigMint's assessment, prices of China's silicon 553 stood lower w-o-w at $1,670/t CFR Mundra. Meanwhile, offers from suppliers' side were at $1,720-1,730/t levels.

Domestic scrap market

In the domestic market, tense scrap prices remain largely stable w-o-w in both Delhi and Chennai. According to BigMint's assessment, domestic tense scrap prices are now at INR 175,000/t ex-Delhi NCR and INR 176,000/t ex-Chennai.

Imported ADC12, special alloys, prices

ADC12, Cyprus, CFR West coast - $2380-2400/t

ADC12, Malaysia, CFR Chennai - $2450-2470/t

ADC12, UAE, CFR Mundra - $2410-2430/t

A356, UAE, CFR Mundra - $2830-2840/t

Outlook

In the short term, prices are expected to stay within a narrow range as major automakers cut prices, despite the upward trend in LME aluminium levels. However, trading activity is anticipated to pick up with the approach of the festive season.