India: Aluminium alloy ingots market remains firm w-o-w

India's domestic market for aluminium alloy ingots remained stable this week, supported by moderate supply levels. SteelMint's assessment revealed that prices of ADC12 aluminium alloy ingot stood firm at INR 193,000-194,000/tonne (t) exw-Faridabad, excluding GST.

The stability in prices can be attributed to reduced production levels in northern India. Original Equipment Manufacturers (OEMs) have managed to sustain their production to meet market demand. In contrast, small and medium-sized players have adjusted their production by around 40% in order to maintain a balanced supply chain, according to sources.

To fulfill the demand in the northern region, some aluminium alloy ingots producers from the western region have offered their ADC12 material at prices ranging from INR 186,000-187,000/t, landed. This has put pressure on the medium and small manufacturers in the north, who are facing selling pressure against their offering of INR 190,000-192,000/t, as reported by a trader.

Major producers such as BALCO and NALCO have listed their ADC12 prices at INR 217,700/t and INR 216,850/t, exw, excluding GST, respectively. Additionally, the tentative offering for aluminium dross currently stands at INR 73,000-75,000/t exw Faridabad, excluding GST.

In terms of raw materials, tense prices were recorded at INR 160,000/t, while taint tabor prices were at INR 161,500-162,500/t, both exy-Delhi, excluding GST. The spread between tense and ADC12 remained at INR 33,000/t for this week. China's silicon 553 is priced at $1,860-1,870/t CIF western coast, equivalent to INR 166,800-168,000/t in the north, while local sellers are offering around INR 171,000-172,000/t with credit payment terms, excluding GST.

On the London Metal Exchange (LME), three-month aluminium futures and spot prices fluctuated around $2,230-2,270/t w-o-w, with a decrease to $2,201/t at the time of publishing this insight compared to $2,250-2,260/t on June 14.

Looking ahead, some die casters anticipate a minor price contraction in the upcoming settlement of ADC12 prices by a major auto company, leading them to prefer lower bids in the current market scenario.