India: Imported aluminium scrap market sees price fluctuations amid banks turmoil

India's imported aluminium scrap prices were volatile echoing the fluctuations on the major commodity exchanges like the London Metal Exchange (LME) and Commodity Exchange Inc (COMEX).

The movement in aluminium prices turned unstable due to the liquidity crisis brought on by the turmoil in some overseas banks. But the volatility was partially eased by precautionary steps taken by UBS. In China, many uncertainties are triggering market participants' buying sentiment, while the supply side has improved slightly.

On the other hand, the Middle East and US sellers were actively participating in the market and some contracts were heard today in India and the Far East.

Recent deals

• In a recent deal, around 150 tonnes (t) of aluminium extrusion scrap 6063 was traded at $2,150/t from Dubai's Jebel Ali to CIF West Coast India.
  
  
• Around three containers of Zorba 93/12 of US origin were sold at $2,280/t CIF Hong Kong. Similarly, UK-origin Zorba 98/10 was sold at $2,230/t CIF Hong Kong.
  
  
• A deal for around 500-600 tonnes of Taint Tabor cut sheared material was concluded 4-5 days ago from the UK at $1,550/t CIF West Coast India.
  
  

Market sentiments

"Most of the exporters/recyclers said that the market has been fluctuating for the last few weeks. There have been variations in offers for material of same origin. These are not reflecting the accurate price trends seen on the futures index," said a reliable importer source.

Nowadays, price volatility in specific scrap grades varies by as much as $70-80/t within the same region, say the the Middle East against the previous $20-30/t.

For instance, Saudi -origin Taint Tabor clean briquette stands at nearly $1,800-1,820/t and the UAE offer is higher by $40-50/t in actual transactions.

Taint Tabor scrap, and extrusion clean briquette varies by $50-60/t, hovering at $2,090-2,100/t from Saudi Arabia and $2,130-2,150/t from the UAE in 20-feet containers to CIF West Coast India.

SteelMint's assessment

• Aluminium Taint Tabor of Middle East origin was offered at $1,840/t CFR Nhava Sheva, up by $30/t w-o-w.
  
  
• US-origin aluminium tense scrap prices are assessed at $1,740/t CFR Nhava Sheva, up $20/t w-o-w.
  
  

LME trend

Three-month aluminium futures and spot prices on the LME decreased significantly by $78/t to $2,274/t in yesterday's trading session as against the last assessment on 14 March 2023. Stocks of aluminium were recorded at 546,200 t, climbing up by around 9,750 t w-o-w.