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

Imported aluminium scrap prices in India experienced significant fluctuations recently. Certain grades witnessed notable increases by up to $40/tonne (t) this week. However, there were some specific grades that experienced a fall by up to $10/t compared to last week.

These price movements can be attributed to the trends observed on the London Metal Exchange's (LME's) three-month futures market, where aluminium prices remained contracted by $40-50/t at $2,230-$2,240/t w-o-w in the last trading session. However, the LME remained closed on 29 May on account of the summer bank holiday. Aluminium stocks on LME rose by 24,580 t w-o-w to 579,775 t.

The price of tense scrap from the US is reasonable when compared to other grades like UK Zorba 95/5 or 94/4 along with the domestic tense price in the northern regions, which is at INR 163,000/t.

SteelMint's assessment for copper motor mix US-origin stands at $1,080/t. US-origin aluminium talk stands at $4,500/t, up by $70/t w-o-w.

China's silicon prices decrease

The price of metallic silicon from China is decreasing due to reduced demand for aluminum alloys and organic silicon, caused by the global economic slowdown. Local manufacturers are operating at high levels, leading to a surplus in supply.

Compared to March, the current prices have dropped by $400-600/t, reaching their lowest point in two years. The export prices for different grades have also fallen, with "2202" priced at $2,300-2,400/t, "3303" at $2,150-2,250/t, "441" at $2,000-2,100/t, and "553" at $1,950-2,050/t. These prices reflect a significant decline compared to March.

The price increase observed in late 2021, driven by environmental regulations and magnesium, has now reversed, and the value has now returned to pre-2021 levels.

The aluminium futures price on the Multi Commodity Exchange is INR 206,000/t, down 0.40% today.

Recent trades

• It has been heard that, at the end of last week, 100 t of Meatball grade was sold at $1,640/t from Germany to India.
  
  
• In another deal, 40 t of Chinese silicon grade 553, was traded at $1,975-1,980/t CIF Chennai recently.
  
  

The SHFE aluminium futures price was recorded at RMB 18,025/t, up RMB 125/t d-o-d today.