India: Aluminium scrap prices increase despite limited demand

The Indian imported aluminium scrap market has recently seen an upward trend in prices, reflecting the surge in futures contracts and price adjustments made by major industry players, as per sources. However, it is notable that domestic demand has remained relatively moderate, primarily due to the approaching Diwali holidays.

Notably, there is a considerable price difference of around $50-60/t between offers for Taint Tabor (TT) cut and sheared 7-8% attachment and Zorba 94/4, and firm bids have been few.

Market participants have indicated that talk scrap of Malaysian origin is currently not viable for the Indian market, prompting sellers to explore alternative markets where they can secure more favourable returns.

India's primary aluminium producers have increased aluminium ingot (P1020, 99.7%) prices by INR 7,500/t ($90/t). Post revision, Hindalco's prices are at INR 222,250/t (2,670/t). All prices are ex-works and exclude GST.

Although there may be labour shortage in the market after Diwali, market players still expect deals to be concluded if futures prices show less fluctuation.

Furthermore, there has been limited demand for silicon 553, which has exerted downward pressure on prices due to piling up of inventories in mills, resulting in a decline in prices of imported material.

Aluminium scrap market

India's aluminium scrap market remained stable against yesterday's closing. Tense scrap prices stood at INR 155,000/t, while utensil scrap prices were at INR 171,000/t exy-Delhi (excluding GST). Market participants are facing liquidity issues, and sluggish demand from buyers has created a stagnant situation in the market. LME aluminium futures inched down by 0.3% to $2,260/t at the time of reporting.

Recent deals

• A container of silicon 553 of China origin sold at $1,950/t, CIF Mundra.
  
  
• Around 100 t wheel scrap of Dubai origin sold at $2180/t, CIF Mundra.
  
  
• Around 40 t tense scrap with 6-8% attachment of West Africa origin was sold at $1,700/t, CIF Klang.
  
  
• Around 80 t tense scrap with 6-7% attachment of Spain sold at $1,650/t, CIF Klang.
  
  
• Around 100 t tense with 8% attachment of Thailand origin sold at $1,660/t, CIF Klang.
  
  

Outlook

Participants are closely monitoring the market and anticipate a slight decrease in buying interest ahead of Diwali. It is expected that a clearer picture will emerge after the festive season.