India: Aluminium ADC12 spot prices continue to rise w-o-w

BigMint's assessment for spot prices of aluminium ADC12 alloy ingot experienced a slight uptick of INR 2,000/t, reaching INR 218,000/t w-o-w exw Delhi NCR, Notably, Tense prices reached INR 192,000/t ex-Delhi, marking a weekly increase of INR 6,000/t. The scrap-to-ADC12 spread has contracted to INR 26,000/t.

Market sources indicated that Tense offers in Chennai are hovering at INR 185,000/t, with spot prices for ADC12 in Chennai ranging between INR 218,000/t to 219,000/t exw on immediate terms, excluding GST.

Indian auto company adjusts ADC12 prices

A key Indian automotive company revealed its monthly settlement price for ADC12, raising it by INR 5,000/t to INR 217,800/t for May. However, market participants suggest this increase happened due to consistently higher raw material prices in the domestic market.

Navigating supply challenges, ADC12 market dynamics

An alloy producer said, "We are currently able to procure tense scrap at around INR 192,000/t - 194,000/t, with a premium of INR 2,000/t compared to the market level, thereby adding additional costs to the company." Small and medium-scale ADC12 producers are adopting a cautious wait-and-see approach.

Premiums for tense scrap have risen due to delays in consignments, with lead times stretching from 40-50 days to 70 days.

According to market insiders, there is scarcity of wheels, taint tabor, and tense, alongside a minor material shortfall from the Middle East, as suppliers in the region are getting better realisations from the Far East, especially South Korea, contributing to the price hike.

In south India, the majority of ADC12 manufacturers are choosing to import ADC12 directly rather than importing scrap and producing ingots, primarily due to elevated price levels.

One manufacturer based in the region stated, "Malaysia is currently exporting a significant quantity of ADC12 to Chennai, marking a notable uptick in ADC12 inflow from the Asian region this month. This increase is particularly notable from Malaysia and Indonesia. Also, buyers in Chennai are importing at $2,500-2,600/t levels from Malaysia."

According to BigMint assessment, imported tense (6-7%) from the US was assessed at $2,000/t, up by $20/t. The price for zorba 95-5 from the UK stood at $2,160/t CFR Nhava Sheva.

However, three-month futures for aluminium were currently at $2,595/t, showing a slight increase w-o-w.

China's silicon market improves

As per BigMint's assessment, prices of China's silicon 553 gained $30/t, settling at $1,880/t CFR Mundra.

Offers and deals:

Zorba 95 -5 UK traded at $2,200/t to CIF Mundra - 100 t.

Aluminum HRB Taint Tabor 2-3% USA traded to CIF Mundra at $2,010/t - 100 t.

Offers for ADC12 from Malaysia, CIF Chennai - $2,600/t.

Offers for ADC12 from Indonesia, CIF Chennai - $2,550-2,600/t.

Outlook

The delay in scrap consignments is driving up prices for semi-finished products, and this trend is expected to persist for another two-three months. Furthermore, potential upward movements in aluminum LME prices may further support alloy ingot prices in the near term.