India : Aluminium ADC12 prices in Delhi NCR, Chennai remain range-bound post-election

• Buyers are currently holding off on purchasing scrap
  
  
• Automobile companies will see a resurgence in demand
  
  

BigMint's latest assessment indicates that spot prices of aluminum ADC12 alloy ingots in Delhi NCR have remained stable at INR 216,000/t, w-o-w ex-works. Similarly, tense scrap prices are holding firm at INR 188,000/t ex-Delhi, with the scrap-to-ADC12 spread recorded at INR 28,000-29,000/t.

BigMint's monthly assessment for automobile-approved ADC12 in Delhi stood at INR 223,000/t, marking an increase of INR 4,500/t m-o-m.

BigMint starts aluminium assessments for Chennai market

Based on feedback from market participants, BigMint has begun tracking ADC12 and tense scrap prices in the Chennai market. ADC12 prices will be assessed weekly, while tense scrap prices will be updated daily. Currently, tense scrap prices in Chennai are around INR 190,000/t. The spot prices of ADC12 in Chennai range between INR 218,000 and INR 220,000/t ex-works, excluding GST. The price spread between tense and ADC12 in Chennai has narrowed to INR 29,000-30,000/t.

Impact of regional stability, elections

Amid the stability in tense prices in the northern region, prices of semi-finished products, including ADC12, have remained almost firm w-o-w. This firmness is despite a slow trend in purchase enquiries for ADC12, driven by impacted cash movements due to the elections.

Heatwave impact

Additionally, the prevailing heatwave has significantly affected worker efficiency, leading to a temporary reduction in production. Despite these challenging conditions, ADC12 prices have held steady amid slow purchasing and operational difficulties.

Buyer insights

A buyer informed BigMint, "Buyers are currently holding off on purchasing scrap, anticipating further price drops."

Medium-scale manufacturer challenges

Several medium-scale manufacturers in northern and western India have struggled to sell ADC12 at lower prices due to higher raw material costs. However, with the arrival of imported consignments and better raw material availability, they are now selling below INR 217/kg, albeit in smaller volumes to facilitate regular destocking. Additionally, production has been hampered by labour availability issues caused by heatwaves.

BigMint's assessment indicates that tense scrap (8-9% attachment) from the UAE remained stable at $1,930/t, CFR Mundra. Meanwhile, extrusion prices from the UAE dropped by $100/t, settling at $2,460/t, CFR Mundra.

Prices of US-origin taint tabor increased by about $30/t w-o-w, reaching $2,070/t, CFR Mundra. Despite a global price drop, US offers remain high due to strong domestic demand, with suppliers asking $2,100-$2,130/t, prices that Indian buyers are unwilling to pay.

Domestic scrap market

In the domestic market, tense scrap prices have remained firm. BigMint's assessment shows domestic tense scrap prices (ex-Delhi NCR) at INR 188,000/t.

China's silicon market

According to BigMint, China's silicon 553 prices rose slightly to $2,010/t CFR Mundra due to sky-high shipping costs, now nearly $4,500 per 20-ft container from China to India. Meanwhile, the local price of silicon in Delhi NCR remained largely stable at INR 183,000-184,000/t.

Outlook

In the near term, it is anticipated that market buying activity might resume, leading to a slight price rise. Expectations are that major automobile companies will see a resurgence in demand.