India: Imported aluminium scrap prices drop amid volatile futures

Imported aluminium scrap prices into India remained on the lower side weighed down by constant price fluctuations in the futures market.

The three-month aluminium futures and spot prices on the London Metal Exchange (LME) fell by $50-$55/t last week despite stocks hitting a one-month low. Stocks were at 503,150 t in yesterday's closing.

Most trade channels said that offers and bids in the imported market varied considerably by as much as $40-60/t depending upon the immediate procurement and prompt selling. Few deals have been heard in the yesterday's trading session but these could not be confirmed from the end-users' side.

A few UK-based exporters are quoting higher offers amid strong domestic prices and improved bids from Far East nations, said an end-user.

Domestic prices in the UK are driven by elevated energy prices and expectations of tight supply as the winter season approaches. Less selling pressure on suppliers are also supporting domestic prices.

Coming to the Middle East, specifically the UAE and KSA, trade channels informed that tight scrap supply in the western nations could be a supporting factor for Gulf nations. As India is a key importer, it may turn to the Middle East for scrap procurement.

Notably, India's scrap import volume is roughly 1.5 -2 million tonnes (mnt) per annum.