India: Imported aluminium scrap prices drop w-o-w, tracking subdued metal futures

The Indian imported aluminium scrap market faced challenges this week. Scrap prices dropped by up to 5.8% w-o-w, based on SteelMint's assessment. Fewer offers matched lower futures and reduced buying inquiries. This led to limited transactions, particularly in certain regions.

The aluminium scrap market is currently experiencing limited demand, largely due to the subdued activity on the metal futures exchanges. This has consequently given rise to bearish sentiments within the industry.

The subdued metal futures exchange has led to reduced investor confidence, affecting trading volumes and price trends. As a result, aluminium scrap prices are marked by lower consumption and subdued trading activities.

Buyers in the northern region of India approached cautiously due to the lowering of metal futures contracts. Consequently, their bids were lower by approximately $50-70/t.

However, importers in the western region of India displayed some positive attitudes, showing interest in potential deals, according to a source.

Meanwhile, US-origin aluminium talk prices plunged by $225/t w-o-w to $4,440 CIF West coast India today. The remaining grades of scrap saw a decline of $20-70/t w-o-w. However, UK-origin wheels prices witnessed a decline of $70/t and Middle East-origin taint tabor dropped by $35/t w-o-w.

The global aluminium market has been undergoing fluctuations, marked by a bid-offer difference of approximately $50-60/t.

Domestic scrap market scenario

Aluminium scrap prices were stable as compared to the previous trading day, with tense prices standing at INR 156,000/t and utensil prices at INR 170,000/t, both exy-Delhi and excluding GST.

Furthermore, it has been reported by a trader that scrap availability within the domestic market appears to be sufficient in the northern region, along with various grades of scrap.

China's silicon prices inch down

China's silicon prices stood at $1,820/t CIF West coast India, down by $10/t w-o-w.

Recent deals

Around 50 t of aluminium taint tabor of Israel origin were sold to CIF West coast India at $1,710/t.

Around 60 t of aluminium talk from the US were sold to CIF West Coast India, at $4,500/t.

Around 50 t of aluminium tense of US origin were sold CIF West coast India at $1,720/t.

Around 50 t of silicon 553 of China origin was sold to CIF West coast India at $1,815/t.

Around 60 t of aluminium taint tabor (2-3%) of US origin were sold CIF West coast India at $1,690 - 1,710/t.

Outlook

The outlook for the aluminium scrap market remains uncertain, with fluctuations influenced by major futures exchanges like the London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE). Market trends will largely depend on supply and demand dynamics, economic conditions like the US CPI and other trade parameters. Close monitoring of these exchanges will be crucial for stakeholders seeking to navigate the volatile landscape of the aluminium scrap market.