India: Imported aluminium scrap prices remain volatile

Imported aluminium scrap prices in India have experienced significant fluctuations. Certain grades witnessed a notable uptick of up to $40/tonne (t) this week. However, there were other specific grades that witnessed a fall of up to $80/t compared to last week.

These price movements can be attributed to trends observed in the London Metal Exchange's (LME's) three-month futures market, where aluminium prices remained at $2,220-$2,280/t, fluctuating $70/t-80/t w-o-w in the last trading session. Aluminium stocks on LME fell by 1,475 t w-o-w to 585,050 t.

SHFE aluminium futures prices were recorded at RMB 18,110/t today, up RMB 80-90/t w-o-w.

Uncertain market conditions made it challenging to predict the direction of imported aluminium prices this week. Opinions on imported aluminium prices diverge as the London Metal Exchange experiences high volatility.

Imported aluminium trades have been minimal this week, with lack of activity in the market. There is currently a shortage of aluminium scrap in the domestic market resulting in low to medium trade activities.

Buyers Pause Procurement; USA Offers significant price

A significant section of buyers have ceased purchasing, refraining from making further acquisitions. However, currently the US offers favourable and satisfactory proposals for aluminum, catering to current market demand.

The offer price seems to have increased from the US for some specific grades like zorba and taint tabor.

SteelMint's assessment for copper motor mix of US-origin stands at $1,130/t. US-origin aluminium talk stands at $4,600/t, up by $100/t w-o-w.

Recent deals

• At the end of last week, 60 t of aluminium talk grade was sold at $4,700/t from the US to west coast India.
  
  
• US-origin 38 t chrome wheels was traded at $2,150-2,170/t CIF Chennai.
  
  
• 50 t of Japanese-origin extrusion 6063 95/5 was sold at $1,960/t to west coast India.
  
  
• 50 t of UK-origin copper birch cliff was sold at 91% at 3-month LME futures price CIF Mundra.
  
  
• 100 t UK-origin Taint tabor (8-10%) was traded at $1,625/t CIF Mundra one-two days back.
  
  
• 200 t of Balco's P1020 was traded at INR 208,000-208,300/t exw.
  
  

Near-term outlook

Given the limited responsiveness of market participants, it is probable that minor adjustments will arise in accordance with the current market expectations. The restricted number of active players in the market may necessitate these corrections to align with the prevailing trends.