India: Imported aluminium scrap prices fall w-o-w; imports up 20% m-o-m in May'24

• Imported aluminium scrap bid prices decrease
  
  
• Aluminium LME price levels remain stable w-o-w
  
  
• Middle East market silent even after Eid holidays
  
  

India's imported aluminium scrap prices have witnessed downward correction this week despite stable LME aluminium prices amid weak buying interest in the market owing to approaching monsoon which has led to a slowdown in activities.

The 3-month LME aluminium prices were recorded at $2,500/t, range-bound w-o-w.

According to BigMint's assessment, tense scrap originating from Middle East particularly the UAE saw a $30/t drop settling at $1,800/t and zorba 95/5 from the UK witnessed a drop of $50/t to $2,080/t CFR west coast, India.

Meanwhile, a few grades like US tense 6-7% and UK taint tabor C/S recorded a drop of up to $25/t w-o-w moving down to $1,835/t and $1,780/t CFR west coast.

Market updates

Although the Middle East market was closed due to the Eid holidays last week, which typically lasted five days from 14 June (Friday) to 18 June (Tuesday), activities still remained on the slow side this week.

An alloy manufacturer stated, "In India, buying interest is expected to stay low until after July. Alloy manufacturers have enough scrap stocks to meet orders for the next 1-2 months because of delayed shipments that arrived in May from orders placed between January and March".

India's aluminium scrap arrivals rise 19%

In May, India's aluminium scrap imports rose by 19% compared to the previous month, building on an 5% increase in April, according to provisional data from BigMint.

In May, India's imports of aluminium scrap reached 161,644 t, indicating a slight improvement compared to the previous month's 135,816 t.

China's silicon market

According to BigMint, prices of China's silicon 553 have come down and were at $1,990/t CFR Mundra witnessing a $50/t fall from the previous price level majorly because of relaxation in freight rates particularly in the South-East Asian region, freight rates were heard at $3,950 per 20 ft containers, down by approximately $150-200.

Domestic scrap market

In the domestic market, tense scrap prices have seen range-bound levels in both Delhi and Chennai. BigMint's assessment shows domestic tense scrap prices (ex-Delhi NCR) at INR 182,000/t and INR 183,000/t ex-Chennai.

Aluminium mix tense: Traded at INR 180/kg ex-Delhi

Aluminium extrusion mix: Traded at INR 192/kg ex Delhi

Aluminium commercial grade wire rod: Traded at INR 236.5/kg ex-Delhi

Domestic buyers are expecting scrap prices to decrease, despite a slight increase in settlement prices for ADC12 by India's largest automobile manufacturer for July.

Recent deals

Shredded Taint Tabor (1-2%) UK was heard Traded at $2000/t last weekend.

Aluminium zorba 95 5 traded at 2070 from UK - CFR Mundra - 300 t

Aluminium TT c/s 5-7% traded at $1820/t from UK to CFR Mundra - 150 t

Wheels (Australia) origin Deal was heard concluded at $2,370/t recently.

Outlook

Looking ahead, imported scrap prices are expected to experience minor corrections due to subdued demand. Globally, uncertainty persists in LME aluminium prices, which have fallen to $2,500/t after reaching a two-year high level of $2,750/t at the beginning of May.