India: Aluminium alloy ingot market dull w-o-w on bearish demand

The domestic market for aluminium ingots in India experienced a decline in the current week due to weak demand, resulting in limited transaction volumes. This trend further confirms the consistent downward movement in prices.

Sellers might consider offering a discount of approximately INR 2,000-3,000/t on decent volumes of quantity, as both imported and domestic aluminium prices are witnessing a decline.

Sources have indicated that in the near term, due to the volatility in the current market condition, the OEM approved offer prices for ADC 12 are likely to witness a marginal downward correction of around INR 1,000-2,000/t exw.

Similarly, prices of aluminium scrap in India have declined since the previous trading day, according to sources. Transaction volumes remained low as a result of sluggish demand, with buyers currently procuring small quantities only on a need-based basis.

Some reliable manufacturers believe that there might be low to moderate level of supply of scrap in the near term. However, other sources seem to have mixed sentiments looking into the material availability and anticipate mild correction in the prices in the near term.

Price trend

• Tense prices were recorded at INR 161,000/t ex-Delhi. While taint tabor prices were at INR 162,500/t, both exy-Delhi (excluding GST).
  
  
• Domestic aluminium alloy ingot ADC12 prices fell by INR 2,000/t at INR 194,000/tonne (t) exw-Faridabad excluding GST this week.
  
  
• ADC12 prices of primary major producers are: BALCO INR 218,450/t and NALCO INR 214,050/t, exw.
  
  
• 45 t of UK origin taint tabor scrap (8%) was traded at $1,600/t, CIF West coast India.
  
  
• 100 t of Saudi Arabia origin tense scrap was sold at $1,800/t to Malaysia.
  
  

Futures market scenario

The three-month aluminium futures and spot prices on the London Metal Exchange (LME) hovered at around $2,231-2,233/t w-o-w.

Prices were at around $2,232/t at the time of publishing this insight, increasing by $16/t w-o-w as against $2,200-2,280/t on 7 June.

Stocks in LME-registered warehouse were recorded at 575,325 t on yesterday's closing, down by around 14,125 t w-o-w.