India: Aluminium alloy ingot prices fall w-o-w on slow demand

Domestic aluminium alloy ingot ADC12 prices fell by INR 3,000/t w-o-w to INR 196,000/t exw-Faridabad this week. The market saw fewer transactions owing to less demand which kept prices on a downtrend.

The downstream industries, such as die casting units along with automotive manufacturing, are underperforming currently. This downward trend is evident across various regions. Furthermore, when assessing the availability of scrap in local markets, the situation becomes increasingly complex, with significant variations seen between regions.

Currently, the imported scrap prices are more favourable for the northern region compared to the local rates. Extensive analysis has revealed a noteworthy trend where imported materials can be procured at approximately INR 2,000-3,000/t less than the domestic prices.

At present, the exports of material are facing a severe setback due to the absence of suitable realization.

SteelMint's assessment of ADC12 aligns closely with the prevailing market prices, accurately reflecting the ongoing trades taking place.

Domestic scrap market overview

India's domestic aluminium scrap prices continued to remain range-bound d-o-d. Tense prices stood at INR 163,000/t ($1,973/t) while utensil prices were at INR 174,000/t ($2,106/t), both exy-Delhi (excluding GST). However, trade volumes were moderate despite the P1020 price cut by major players today.

The cost of ADC12 ingots sourced from Gujarat exhibits a notable difference, estimated to be approximately INR 3,000-4,000/t lower compared to the prevailing prices in the Delhi market. This considerable variance in cost has the potential to create a significant selling pressure within the market.

Currently, the silicon 553 grade prices are at INR 190,000/t - 192,000/t with credit payment terms, ex Delhi, excluding GST, informed a reliable end-user source.

Currently, the silicon metal prices of China origin are at $2,010/t till yesterday's assessment. The levels of $1,970-1,975/t were also heard from reliable sources today. However, this information could not be confirmed till the time of publishing this article.

The three-month aluminium futures and spot prices on the London Metal Exchange (LME) hovered at around $2,220-2,300/t w-o-w.