India: Aluminium ADC12 prices remain firm w-o-w amid stable raw material costs

Aluminium ADC12 alloy ingot automobile equivalent spot prices remained stable INR 190,000/t amid range-bound tense prices at INR 159,000/t exy Delhi, excluding GST, as per SteelMint's assessment.

The current spread between tense and ADC12 stood at around INR 31,000/t exw Delhi. Imported tense scrap prices from the Middle East, particularly from the UAE, fell by $15/t to $1,640/t yesterday. Tense (6-7%) from the US was heard at $1,710/t, up by $15/t. The price for zorba 95-5 from the UK stood at $1,970/t, up $30/t w-o-w.

Scrap availability

One of the raw material traders shared that tight scrap availability in the domestic market still exists. On the other hand, demand improved gradually to ensure the smooth procurement amid optimistic sentiments.

Whereas, rest of the grades like aluminum extrusion scrap seems to be moderate in the local markets and a few offers were being floated with discounts by around INR 500-1,000/t in the northern region.

However, three-month futures for aluminium were currently at $2,215/t, reflecting a weekly decrease of approximately $15-20/t.

According to sources, the local price of tense scrap is INR 158,000-159,000/t, and ADC12 price in Chennai hovered at INR 189,000-190,000/t, exw and excluding GST with recent few deals heard at same level.

Additionally, the price of Silicon 553 of Chinese-origin has decreased w-o-w to $2,140/t, down $10/t.

Recent Trades

UK origin Zorba 95/5 was heard concluded at $1,980/t, 200 t, CFR WC India recently.

UAE origin Trump was heard concluded at $1,760, 100 t, to CFR South Korea recently.

A few ADC12 export tentative offers were quoted at $2,350/t from the Middle East, $2,360/t from India, and $2,380/t from Malaysia to CFR Japan but could not get the trade confirmation till the time of reporting, sources informed SteelMint.

Outlook
The prices of ADC12 may remain supportive due to limited availability of scrap and the upcoming monthly price announcement by a major automobile company which is also a price settler is expected to be largely positive.