India: Imported aluminium scrap prices edge up w-o-w after Diwali

• Weak demand, bid-offer gaps keep prices stable
  
  
• Trade activity, offers increase following Diwali
  
  

Imported aluminium scrap prices in India remained relatively stable, with a slight w-o-w increase. Buying interest was weak, and bid-offer disparities were seen despite steady London Metal Exchange (LME) aluminium levels. Post-Diwali, the market saw a mild uptick in activity, leading to higher offers as demand picked up.

BigMint's benchmark assessment for tense scrap originating from the UAE was at $1,770/t, stable w-o-w. Meanwhile, zorba 95/5 from the UK held steady at $2,070/t, both CFR west coast, India.

At the time of reporting, three-month aluminium futures on the LME remained firm at $2,645/t compared to the previous week's $2,640-2,650/t. Meanwhile, stocks at LME-registered warehouses stood at 741,900 t, falling by 0.6% w-o-w from 746,200 t.

There has been a noticeable disparity between bids and offers in the Indian zorba market, largely due to reduced availability over the past 2-3 months. Much of the zorba supply is now being absorbed by the domestic markets of the US and the UK, where demand remains strong. These countries also have advanced sorting facilities for separating red metals, making it more efficient and profitable to sell locally rather than exporting.

An Indian alloy manufacturer observed that the domestic market currently lacks confidence, as imported scrap prices are being influenced more by fluctuations in LME aluminium prices than by the actual supply-demand conditions.

In south India, many participants expect a slowdown in trade activity and demand over the next two months, with the northeast monsoon still pending. The upcoming rainy season is expected to bring flooding and operational disruptions in the near term.

China's silicon market

According to BigMint's assessment, prices of China's 553-grade silicon remained steady w-o-w at $1,740/t CFR Mundra. Meanwhile, offers from the suppliers' side were at $1,760-1,770/t. However, bids were heard lower, at $1,710-1,720/t.

Freights from China to Mundra for 20-foot containers stood at $1,800.

Domestic scrap prices firm

In the domestic market, tense scrap prices remained firm w-o-w in both Delhi and Chennai. According to BigMint's assessment, domestic tense scrap stood at INR 172,000/t ex-Delhi NCR and INR 173,000/t ex-Chennai.

Despite a slight increase in offers for domestic casting scrap in both the northern and southern regions, workable prices remained at INR 170,000-172,000/t in both Delhi and Chennai.

Outlook

Market participants expect imported scrap prices to remain on the upper side in the short term, driven by an increase in LME levels, stemming from a global alumina supply shortage.