India: Aluminium ADC12 alloyed ingot prices remain largely stable w-o-w
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India's spot prices of aluminium ADC12 alloyed ingots remained range-bound w-o-w in both the northern and southern regions, influenced by week demand and stable domestic raw material costs.
BigMint's benchmark assessments for the 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 $2,525/t, largely stable w-o-w. Stocks at LME-registered warehouses stood at 803,025 t.
A producer said: "The stability is due to weak demand and high inventory levels in the automobile sector, which have curbed aggressive buying and exerted downward pressure on prices."
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."
A manufacturer said: "Prices are not rising due to ample material available in the market. Currently, exports from India are underperforming, leading to an excess supply being offloaded into the domestic market, which is putting downward pressure on prices."
Domestic aluminium ADC12 alloy ingot prices remained stable with little fluctuation. Although some transactions are occurring, overall demand remained muted.
Additionally, the spread between tense scrap and ADC12 spot prices was in the range of INR 32,000-33,000/t.
Global market trends
"Price stability is primarily driven by the abundant supply of material in the market. Weak export performance from India has resulted in excess stock being absorbed domestically, putting downward pressure on prices. Moreover, payment challenges within the domestic market are adding to this situation," said an industry insider.
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.
Aluminium scrap imports decline m-o-m in Aug'24
In August 2024, aluminium scrap imports were recorded at 159,000 t, down by 7.3% m-o-m as against July's 171,600 t.
Pakistan market overview
The demand outlook for aluminium ingots has improved, with market activity showing increased momentum with export prices increasing w-o-w by up to $70/t.
In Pakistan, Off grade ADC12 is currently priced at $2,270/t CFR Port Ningbo, while alloy aluminium ingot with a high zinc content (4% to 5%) is priced between $2,230/t and $2,240/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, deal prices
ADC12, UAE, CFR Mundra - $2,400-2,420/t
ADC12, Malaysia, CFR Chennai - $2,430-50/t
A356, UAE, CFR Mundra - $2,700-10/t
LM6, UAE, CFR Mundra - $2,560-2,570/t
LM24, UAE, CFR Mundra - $2,580-2,600/t
Outlook
In the near term, prices are expected to remain range-bound as major automakers reduce prices, despite the positive movement in LME aluminium levels. However, trading activity is likely to increase with the festive season approaching next month.