India: Aluminium ADC12 prices remain range-bound; domestic scrap edges down
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According to BigMint's latest assessment, spot prices for aluminium ADC12 alloy ingots (general-application) in Delhi NCR and Chennai decreased by up to INR 1,000-1,500/t w-o-w. In the Delhi NCR region, ADC12 spot prices were assessed at INR 211,000/t ex-Delhi, aligning with a decline in domestic tense scrap prices, which settled at INR 181,000/t ex-Delhi.
Likewise, ADC12 prices in Chennai were reported at INR 212,500/t for immediate payment basis, excluding GST. At the same time, casting scrap prices fell by INR 1,000/t w-o-w, settling at INR 182,500/t ex-Chennai.
BigMint's assessment of OEM approved aluminium ingot ADC12 India stands at INR 223,000/t exw-Delhi,
LME aluminium prices
Meanwhile, three-month LME aluminium prices at the time of reporting were largely stable at $2,498/t compared with the previous week's $2,500/t.
Imported scrap prices
The decline in prices was attributed to the decrease in imported scrap prices, particularly for grades like tense and taint tabor which are crucial raw materials in the production of ADC12 ingots.
According to BigMint's assessment, tense scrap originating from Middle East particularly the UAE saw a $30/t drop settling at $1,800/t and zorba 95/5 from the UK witnessed a drop of $50/t to $2,080/t CFR west coast, India.
Scrap price movements
Meanwhile, a few grades like US tense 6-7% and UK taint tabor C/S recorded a drop of up to $25/t w-o-w moving down to $1,835/t and $1,780/t CFR west coast.
Interestingly, the price difference between tense scrap and ADC12 remained largely consistent at INR 30,000/t in both the northern and southern regions. This spread showed stability w-o-w.
Domestic market updates
An alloy manufacturer stated, "India's ADC12 exports have decreased, with Japan usually being the main market. However, Japanese demand hasn't rebounded, resulting in higher domestic inventories in India and causing a slight drop in prices and demand."
Another source mentioned, "In India, purchasing interest for scrap is expected to remain low, with a possible increase anticipated after July. Alloy producers appear to have ample scrap stock, enough to meet orders for the next one to two months. This surplus is mainly due to delayed shipments that arrived in May from orders placed between January and March."
Aluminium scrap arrivals
In May, India's aluminium scrap imports rose by 19% compared to the previous month, building on an 5% increase in April, according to provisional data from BigMint.
In May, India's imports of aluminium scrap reached 161,644 t, indicating a slight improvement compared to the previous month's 135,816 t.
China's silicon market
According to BigMint, prices of China's silicon 553 have come down and were at $1,990/t CFR Mundra witnessing a $50/t fall from the previous price level majorly because of relaxation in freight rates particularly in the South-East Asian region, freight rates were heard at $3,950 per 20 ft containers, down by approximately $150-200.
Additionally, purchasing interest has stayed low because major aluminium alloy manufacturers have sufficient silicon supplies, leading to reduced market activity.
Recent deals
Aluminium wheels from UK traded at $2,360 CFR Chennai.
China origin silicon 553 traded at $1,980/t CFR Chennai recently.
Outlook
It is expected that prices of alloy ingot ADC12 may experience a slight decline primarily due to the monsoon season and ongoing uncertainties surrounding LME aluminium price direction and subdued demand conditions.
