India: Imported aluminium scrap prices decline w-o-w following drop in LME tags

• Exporters redirect Zorba 95-5 to HK amid better realisations
  
  
• UAE's export offers increase amid robust domestic demand
  
  

Imported aluminium scrap prices in India trended down w-o-w by up to 3.6%. A decline in London Metal Exchange (LME) aluminium tags weighed on prices of certain grades of scrap.

BigMint's benchmark assessment for Tense scrap originating from the US was at $1,815/tonne (t), falling by $15/t w-o-w, while Wheels from the UK stood at $2,450/t, down $25/t w-o-w, both CFR west coast, India.

This week, LME prices fell by around 3% to $2,585/t. Meanwhile, stocks at LME-registered warehouses stood at 592,625 t, falling by around 11,650 t w-o-w.

Market scenario

A trader stated that the UAE's domestic market remains strong, with new suppliers entering due to robust demand. With a significant share of material being consumed locally, export offers have increased recently.

Additionally, aluminium Wheels from the UK were recently traded at LME -200 from Australia to CIF Chennai, while some transactions took place at LME -150 in certain locations.

As per a source, "Zorba 95-5 is yielding better realisations in Hong Kong, exceeding $70/t, compared to India, which has prompted sellers to redirect Zorba shipments to the Far East and Southeast Asian markets."

Domestic scrap prices stable w-o-w

In the domestic market, Tense scrap prices in both Delhi and Chennai remained stable w-o-w. According to BigMint's assessment, domestic Tense scrap stood at INR 175,000/t ex-Delhi-NCR and INR 176,000/t ex-Chennai.

China's silicon prices fall

With the Chinese New Year about to begin, participants were largely absent from the market. According to BigMint's assessment, prices of China's 553-grade silicon declined by $30/t w-o-w to $1,530/t CFR Mundra.

Outlook

Aluminium scrap prices are likely to remain range-bound in the near term, given the volatility in LME aluminium tags. However, bid-offer disparities may persist for specific grades, creating challenges in certain segments.