India: Imported aluminium scrap prices rise w-o-w ahead of EU holidays

India's imported aluminium scrap prices have gained slightly this week amid a marginal rise in LME aluminium prices and a slight increase in buying activity amid the European region ahead of the summer break.

Meanwhile, three-month LME aluminium prices were at $2,526/t, up marginally by 0.5% w-o-w. Stocks at LME registered warehouses stood at 994,175 t, down by 3% w-o-w.

According to BigMint's assessment, tense scrap from the Middle East, particularly the UAE, rose by $50/t to settle at $1,830/t and zorba 95/5 from the UK gained $5/t to settle at $2,060/t CFR west coast, India.

Market insights

Currently, there is an expectation that material availability will tighten for certain grades due to the upcoming holidays in Europe. Buyers are actively seeking imported scrap to before the European market goes into holiday mode. There is also anticipation that prices may rise further once the holidays commence.

Meanwhile, some alloy manufacturers in the market claim they have sufficient inventories of scrap to meet demand for the next one-two months. These inventories primarily consist of scrap from delayed consignments purchased at higher price levels between January and March. Manufacturers are hesitant to reduce their offers for ADC12 alloy because selling alloy ingots at lower rates would negatively impact their profit margins.

Meanwhile, offers for US taint tabor HRB (2-3%) remain firm at $2,030-$2,040/t. Bids, however, are slightly lower. According to BigMint, the price for US taint tabor HRB (2-3%) is $2,000/t CFR Mundra. Market participants note a slight shortage of this material.

Prices of US tense (6-7%) stood at $1,850/t CFR Mundra. However, suppliers were heard offering at $1,900/t levels and buyers' bids remained lower by $50-$60/t, indicating a bid-offer disparity in the market.

Medium and small traders continue to encounter difficulties in obtaining scrap due to price volatility. Many are choosing to adopt a wait-and-see approach until the market conditions stabilise.

China's silicon market

Prices of China's silicon 553 have seen a marginal uptick reaching $2,000/t CFR Mundra amid rising freight rates. However, buying interest has stayed low because major aluminium alloy manufacturers have sufficient silicon supplies, leading to reduced market activity.

Additionally, the sea freight fee from China to Mundra was heard at $3,800-$4,000 per 20-ft container.

Domestic scrap market

In the domestic market, tense scrap prices have been rangebound in both Delhi and Chennai. BigMint's assessment shows domestic tense scrap prices (ex-Delhi NCR) at INR 181,000/t and INR 182,000/t ex-Chennai.

Global updates

India to impose duties on Chinese aluminum frames

On 29 June, India's Ministry of Commerce and Industry finalised an anti-dumping investigation on anodized aluminum frames for solar panels/modules from China. It will impose duties ranging from $433/t to $577/t on imports under customs classifications 76109010, 76109030, and 76169990.

Outlook

In the short term, prices for imported scrap are anticipated to stabilise within the current range. There is global uncertainty surrounding LME aluminium prices due to heightened Chinese production, particularly once Yunnan's capacity restarts. Nevertheless, there are challenges as alumina supply lags behind smelter demand.