India: Aluminium alloy ingot prices contract despite firm raw material prices w-o-w

The Indian domestic aluminium alloy ingot market saw price decreases despite firm raw material prices specifically tense scrap along with almost firm futures contracts and nominal change in import scrap prices w-o-w. Prices of ADC12 aluminium alloy ingots were down by INR 2,000/t to INR 190,000-191,000/t exw-Faridabad, according to SteelMint, excluding GST.

Manufacturers based in the northern region currently offered with a substantial price gap, spanning as much as INR 2,000 to 3,000/t, SteelMint learnt.

"The overall market is experiencing decreased demand, but moderate level of transactions exist," sources said.

This week, the market has witnessed a wide range of prices, with notable deviations between formula-based and non-formula-based players, reflecting divergent pricing level.

Small and medium-sized manufacturers in the aluminium alloy ingot sector have faced a challenging week with notably low demand.

For September 2023, Maruti (MSIL) experienced a slight price adjustment of INR 750/t, bringing the price to INR 202,250/t. The currency has depreciated by 0.6% to 83.12 compared to the previous month, resulting in an approximate increase of INR 750-1,000/t in the cost of imports.

"The market in the northern region is facing disruptions due to certain landed consignments originating from the western region," sources informed.

The local silicon prices in Delhi have surged to INR 172,000/t, marking a significant increase from the previous range of INR 168,000-169,000/t for payments made within 30 days.

The availability of tense is currently not ideal due to an imbalance in the quality of supply. In this situation, there is a scarcity of superior quality raw material in comparison to the more readily available inferior quality.

Primary alloy ingot producers prices slightly up: India's primary aluminium producers, Balco and Hindalco increased alloy ingot (P1020) prices marginally by up to INR 750/t ($/t). Post-revision, Balco's prices stand at INR 210,250/t ($2,527/t), while Hindalco's prices are at INR 211,750/t ($2,545/t). All prices are exw, excluding GST.

China's silicon prices up

Recently, China's silicon 553 prices stood at $1,910-1,920/t CIF west coast India, up by $15/t w-o-w.

Outlook

Among trade players, there appears to be a mixture of sentiments, but the prevailing outlook leans toward a positive trend as we approach the upcoming festive season. This optimism is largely grounded in the anticipation that the festive season may provide a much-needed boost to various sectors, particularly the automobile industry.