India: Aluminium ADC12 alloyed ingot prices remain range-bound amid weak demand

India's spot prices of aluminium ADC12 alloyed ingots remained range-bound w-o-w in both the northern and southern regions, influenced by reduced 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 $2,536/t, marking a 7% decline w-o-w. Stocks at LME-registered warehouses stood at 817,350 t.

Major automaker cuts ADC12 prices for October

India's leading automobile manufacturer has set ADC12 prices of October 2024 settlements at INR 215,900/t, reflecting a decrease of INR 2,600/t from the previous month's price of INR 218,500/t.

A source said: "The drop is attributed to weak demand and elevated inventory levels in the automobile sector, which have limited aggressive purchasing and put downward pressure on prices."

Domestic aluminium ADC12 alloy ingot prices remained steady, with minimal fluctuations. While some transactions are taking place, overall demand continues to be subdued.

Additionally, the spread between tense scrap and ADC12 spot prices was in the range of INR 33,000-34,000/t.

Global market trends of aluminium alloys

A seller said: "The stability in prices is largely due to the ample supply of material in the market. With weak export performance from India, excess stock is being absorbed domestically, exerting downward pressure on prices. Additionally, payment issues within the domestic market are further contributing to the situation."

Another market insider said: "Japan continues to show little interest in importing ADC12 alloy, affecting market dynamics. Currently, major OEMs are sourcing alloy ingots directly from Malaysia and Thailand, as these imports are more competitively priced compared to domestic offerings. Furthermore, the volatility in imported scrap prices has deterred alloy ingot manufacturers from purchasing raw materials."

Imported scrap trend

Imported aluminium scrap prices in India drifted higher w-o-w amid a rise in LME aluminium prices. Meanwhile, transactional activities remained on the lower side for few grades due to significant bid-offer disparities seen in the market.

BigMint's benchmark assessments showed that tense from the UAE was priced at $1,810/t, up by 1.1% w-o-w, while zorba 95/5 from the UK was assessed at $2,070/t, both CFR West Coast, India, BigMint's report indicates a $30/t rise in US taint tabor prices, bringing them to $1,980/t CFR on India's West Coast.

Pakistan market overview

The demand outlook for aluminium ingots remains sluggish, with market activity slowing due to changes in Customs' regulations and fluctuations on LME, affecting both buying and selling dynamics.

In Pakistan, Off grade ADC12 is currently priced at $2,200 CFR Port Ningbo, while alloy aluminium ingot with a high zinc content (4% to 5%) is priced between $2,160 and $2,180 CFR Port Ningbo.

China's silicon market

According to BigMint's assessment, prices of China's silicon 553 stood lower w-o-w at $1,680/t CFR Mundra. Meanwhile, offers from suppliers' side were at $1,720-1,730/t levels and bids were heard at $1,660-1,680/t levels.

Sea freight rates from China to Mundra have remained largely stable w-o-w, ranging from $1,500 to $1,600/20-foot container.

Silicon prices have eased slightly as China observes the Mid-Autumn holiday. China's silicon 553 was recently purchased at $1,650/t, CFR Chennai.

Domestic scrap market

In the domestic market, tense scrap prices inched up 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 - $2,380-2,400/t.
  
  
• ADC12, Malaysia, CFR Chennai - $2,430-50/t.
  
  
• A356, UAE, CFR Mundra - $2,670-80/t.
  
  
• LM6, UAE, CFR Mundra - $2,550-2,560/t.
  
  
• LM24, UAE, CFR Mundra - $2,570-2,600/t.
  
  
• ADC12 sold at 30-45 days credit at INR 212/kg ex Delhi.
  
  
• ADC12 sold at INR 206/kg ex Gujarat.
  
  
• ADC12 sold at 209.5/kg, ex Chennai.
  
  
• ADC12 bought at 213/kg, ex Chennai.

  Payment - credit (30 days)
  
  

Outlook

In the coming days, prices are expected to decline slightly in the near term as major automakers cut prices despite rising LME aluminium prices. However, trading activity is anticipated to increase with the arrival of the festive season next month.