India: Aluminium ADC12 prices remain range-bound
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Spot prices of aluminium ADC12 alloy ingots (automobile equivalent) in Delhi NCR and Chennai remained range-bound w-o-w, according to BigMint's latest assessment. In the Delhi NCR region, ADC12 spot prices were assessed at INR 213,000/t ex-Delhi, aligning with domestic tense scrap prices, which settled at INR 181,000/t ex-Delhi.
Likewise, ADC12 prices in Chennai were reported at INR 214,500/t on immediate payment basis, excluding GST. At the same time, casting scrap prices were at INR 182,000/t ex-Chennai.
LME aluminium prices
Meanwhile, three-month LME aluminium prices are largely stable at $2,538/t compared with the previous week's $2,525/t.
Imported scrap prices
According to BigMint's assessment, prices of tense scrap originating from the Middle East, particularly the UAE, dropped by $20/t to $1,780/t and zorba 95/5 from the UK fell by $25/t to $2,055/t CFR west coast, India.
Meanwhile, a few grades like US tense 6-7% recorded a drop of up to $15/t w-o-w in prices, moving down to $1,835/t and $1,780/t CFR west coast.
An alloy manufacturer based in north India said, "We are currently supplying material at a discount of 1,000-2,000/t to regular contract buyers to maintain consistent supply. However, we plan to wait for prices to increase to meet our profit margins."
A source stated, "In India, purchase interest for scrap is expected to remain low, with a potential increase anticipated after July. Alloy producers appear to have ample stocks to meet orders for the next two months."
The source further shared: "Buyers are currently avoiding imported material since domestic options are cheaper. Ingot sales have dropped showing market weakness."
Additionally, cash flow issues have extended payment periods from the usual 30 credit days to 45-50 days. Sellers are now asking buyers to place offers, highlighting a shift towards a buyer's market.
Imports of semi-finished aluminium rise
In a significant development, Indian automobile die casters have increased imports of ADC12 ingots, which recorded a rise of ~80% m-o-m in May reaching 6,500 t compared to the previous month's 3,700 t. Meanwhile, other grades such as A356, LM6, LM24 and LM25 accounted for the remaining 32,200 t.
Malaysia exported a significant amount of ADC12 to Chennai in May, with increased inflows from Southeast Asian countries compared to April. Reports indicate over 3,366 t of ADC12 alone was exported to Chennai during the month.
China's silicon market
According to BigMint, prices of China's silicon 553 have stayed range-bound at $1,990/t CFR Mundra. Buying interest has stayed low because major aluminium alloy manufacturers have sufficient silicon supplies, leading to reduced market activity.
Domestic scrap market
In the domestic market, tense scrap prices have been range-bound in both Delhi and Chennai. BigMint's assessment shows domestic tense scrap prices (ex-Delhi NCR) at INR 181,000/t and INR 182,000/t ex-Chennai.
However taint tabor and utensils scrap prices were recorded at INR 183,000/t and 185,000/t ex Delhi.
Recent deals
Zorba 95 5 Uk origin traded at $2,080/t CFR Mundra
TT C/S 5-7% UK origin traded at $1,850/t CFR Mundra
Outlook
Prices of alloy ingot ADC12 are anticipated to decline slightly due to downward correction in scrap prices during monsoon and uncertainties in LME aluminium price trends.