India: Aluminium ADC12 spot prices stable even as domestic scrap declines

BigMint's assessment for spot prices of aluminium ADC12 alloy ingot saw a slight uptick by INR 1,000/t, reaching INR 219,000/t w-o-w exw Delhi NCR. Notably, tense scrap prices were at INR 187,500/t ex-Delhi, marking a weekly decrease of INR 4,500/t. The scrap-to-ADC12 spread has increased to INR 31,500/t.

Market sources indicated that tense offers in Chennai are hovering at INR 191,000/t, with spot prices of ADC12 in Chennai ranging between INR 222,000-223,000/t exw on immediate terms, excluding GST.

Trends in ADC12 market

Despite the decline in tense prices in the northern region, prices of semi-finished products have not been impacted, as there was a positive trend in the purchasing inquiries for ADC12.

Market insiders reported shortage of wheels, taint tabor, and tense, coupled with a slight deficit in materials from the Middle East. Suppliers in the region are finding more reasonable opportunities in the Far East, particularly in South Korea.

South India's shift towards direct imports

Most ADC12 manufacturers in south India prefer importing ADC12 directly instead of importing scrap and making ingots, mainly because of higher cost of production.

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, with around 400 t of ADC12 bought from the latter at $2580/t, CFR Chennai."

The Japanese market has not shown aggressive buying behaviour but is expected to resume purchases from mid-May. ADC12 offers from the UAE to Japan are priced at $2,510-2,520/t.

According to BigMint's assessment, imported tense (6-7%) from the US was assessed at $2,010/t, up by $10/t. Prices of zorba 95-5 from the UK stood at $2,170/t CFR Nhava Sheva.

However, three-month futures for aluminium were currently at $2,580/t, showing almost firm levels w-o-w.

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China's silicon market

BigMint's evaluation indicated that prices of China's silicon 553 held stable at $1,880/t CFR Mundra. Furthermore, the tentative export prices (FOB) of silicon 441-grade ranged from $1,880 to $1,920/t.

A source stated that purchasing activity in the market is subdued, as buyers have already stocked up on silicon when prices were lower a few weeks ago.

Offers, deals:

Offers of ADC12 from Malaysia were at $2,600/t, CIF Chennai.

Offers of ADC12 from the UAE were at $2,630/t, CIF west coast India.

Around 400t of ADC12 bought from Malaysia at $2580/t, CFR Chennai.

Outlook

The potential fluctuation in domestic scrap prices could influence alloy prices in the coming weeks, even though it is anticipated that ADC12 prices will hold stable this week.