India: Imported aluminium scrap market turns gloomy

India's imported aluminium scrap market witnessed a minor downward correction despite inadequate supplies from the overseas markets. Price declines are also being seen in the exchange markets such as the London Metal Exchange (LME).

It is interesting to note that the majority of Indian purchasers have held back their offers over the past four-five days and are now hoping to close a few consignments at a metal recycling event that will take place in Kerala.

Additionally, traders lack clarity due to market instability and are expected to resume their usual offshore purchases once they know China's pricing trend and market direction after the CNY holidays.

"The prominent economies are not in a good shape as reports either show downgrade or near to stable outlook for the developed nations," a trader source said.

According to SteelMint, landed prices of US-origin imported aluminium scrap at around INR 171,000-172,500/t including price rationalisation, taxes and other charges like freight/CHA, etc. compared to INR 167,000-169,000/t for domestic scrap exy Delhi, excluding GST.

With the exception of a few imported transactions, the US local market is known for being extremely competitive and offers not meeting the LME exchange market level.

Scrap transactions

Recently, it was reported that a small volume of scrap was being aggressively sold to varoius countries by the UK, Europe, Saudi Arabia and a few other big suppliers.

• Around 200 t of Zorba 98-3 of UK origin sold at $2,020/t CIF Klang. In another deal, two containers EU-origin Zorba 97-3 were sold at $2,020/t CIF Klang.
  
  
• Around 90 t of UK-origin taint tabor and shredded with 1% attatchment was sold at $1,920/t CIF Mundra. Around 50 t of US-origin small motor was sold at $1,190/t CIF Mundra.
  
  
• Another 45 t of Brazil-origin tense scrap with 7% attatchment was traded at $1,835/t CIF Far East.
  
  
• Four containers of trump 8-10% of attachment from Saudi Arabia were traded at $1,985/t CIF Haiphong.
  
  

SteelMint's assessment

• SteelMint's assessment for US-origin aluminium talk scrap is at $4,680/t CFR Nhava Sheva, down sharply by $105/t w-o-w.
  
  
• Aluminium extrusion scrap offers from the Middle East stood at $2,330/t, a decrease of $30/t against last week.
  
  
• Aluminium tense prices from the US hovered at $1,850/t CFR Nhava Sheva today, down $20/t w-o-w.
  
  
• UK-origin Zorba 95-5 stood at $1,990/t CFR Nhava Sheva, down $60/t w-o-w.
  
  

LME trend

Three-month aluminium futures and spot prices on the LME surged $86/t in January to $2,520/t against December. Stocks of aluminium were assessed at 409,375 t this, a shortfall of 71,127 t compared with December.