India: Imported aluminium scrap prices remain stable w-o-w

Aluminium scrap prices in India have remained almost stable w-o-w. According to BigMint's assessment, Taint Tabor prices (USA, HRB-3%) remain stable at $2,040/t. Prices of Tense scrap from the US were slightly up by $10/t at $1,970/t. LME aluminium prices at the time of reporting remained rangebound at around $2,700/t.

Additionally, Talk scrap prices from the US and UAE fell by over 4% due to a $400/t decrease in LME copper prices recently. Notably, LME copper prices reached a two-year high last week, exceeding $11,000/t.

Buyers hold back amid price disparity

In a recent update from the aluminium scrap market, an alloy manufacturer and scrap buyer shared insights: "Prices have been steady due to firm LME aluminium prices," they noted. "However, there's been a noticeable lack of buying activity because buyers are hesitant at these price levels. This has created a significant gap between bids and offers."

For example, bids for Zorba 95-5 from the UK were at $2,100/t but suppliers are holding firm, unwilling to sell below $2,150/t. This mismatch highlights the limited buying interest currently being seen in the market.

In the global scrap market, volatility remains a key issue. There are notable discrepancies between offers and bids for various grades of aluminium scrap. While some offers remain high, bids can be lower by as much as $70-80/t. This situation is largely due to cash flow issues amid ongoing elections, which have injected a sense of uncertainty resulting in cautious spending. Buyers are adopting a wait-and-see approach, anticipating further price correction before making significant purchase decisions.

In the Middle East market, extrusion offer prices are around $2,560/t. However, actual trade levels are slightly lower, hovering around $2,520-30/t. Trade sources also indicate that Talk is being traded at 50% of LME copper levels.

Domestic scrap market

In the domestic market, tense scrap prices have risen by INR 1,000/t. BigMint's assessment shows domestic tense scrap prices (ex-Delhi NCR) at INR 188,000/t. Prices rebounded last week after a sharp decline.

According to a source, "Tense prices have increased in Delhi, which could drive ADC12 prices higher in the near term, especially following a recent price hike announcement by a major automobile company."

Aluminium scrap imports rise in April, but lower y-o-y

In April, India's aluminium scrap imports increased by 5% m-o-m following an 18% rise in March. Despite this growth, imports were 4% lower than the same period last year, according to provisional data from BigMint.

In April, India's aluminium scrap imports totalled 135,816 t, reflecting a modest increase from 128,861 t in March. However, this was a slight decline compared to April 2023, when imports stood at 141,894 t.

China's silicon market

According to BigMint, prices of China's silicon 553 have remained firm at $1,980/t CFR Mundra, as buyers procured material when prices were lower.

The local price of silicon in Delhi NCR is at INR 183,000/t, decreasing w-o-w.

Outlook

Market analysts suggest that the current volatility is temporary and linked to the political climate. Once the election results are declared, it is expected that the market will regain stability and clarity.