India: Imported aluminium scrap prices rise w-o-w as market regains momentum after Diwali

• China's aluminum scrap imports may rise as restrictions ease on 15 November.
  
  
• Indian zorba market sees bid-offer gap, with US/UK demand absorbing supply.
  
  

Imported aluminium scrap prices in India edged up, increasing by up to 1.4% w-o-w. Post-Diwali, the market saw a mild uptick in activity, leading to higher offers as demand picked up despite lower LME levels.

BigMint's benchmark assessment for tense scrap originating from the UAE stood at $1,770/t, stable w-o-w. Meanwhile, zorba 95/5 from the UK stood at $2,100/t, up $30/t, both CFR west coast, India.

At the time of reporting, three-month aluminium futures on the LME stood at $2,555/t, slightly dropped by 1% compared to the previous week's $2,590-2,610/t. Meanwhile, stocks at LME-registered warehouses stood at 729,325 t, falling by 2% w-o-w from 741,900 t.

Market insights

The Indian zorba market is currently experiencing a bid-offer disparity, mainly influenced by global market trends; however, small quantities of deals were heard at $2,100/t level. A large portion of zorba supply is now being absorbed by strong domestic demand in the US and the UK.

A trader said, "Bookings have started for mid December, with all orders to be completed by mid November. After that, market activity is expected to slow down until mid January, as participants wait for new price developments".

An Indian alloy manufacturer observed that there was slight positivity in the market and the demand for alloy ingots has improved. Additionally, auto inventories are being cleared out.

Local demand for aluminum wheels is currently strong. Aluminum die casters who typically import wheels for their use are now selling them in the domestic market, securing higher returns than before, BigMint learned from sources.

China market

China's aluminum scrap imports are likely to grow as domestic import restrictions are relaxed starting 15 November. New regulations mandate a minimum aluminum content of 91% and a maximum impurity level of 0.8%, while some smelters are looking to boost scrap feedstock usage to lower raw material expenses.

According to BigMint's assessment, prices of China's 553-grade silicon remained steady w-o-w at $1,740/t CFR Mundra. Meanwhile, offers from the suppliers' side were at $1,760-1,770/t. However, bids were heard lower, at $1,710-1,720/t.

Domestic scrap prices stable

In the domestic market, tense scrap prices remained steady w-o-w in both Delhi and Chennai, while other grades witnessed downtrend. According to BigMint's assessment, domestic tense scrap stood at INR 172,000/t ex-Delhi NCR and INR 173,000/t ex-Chennai.

Outlook

Market participants anticipate stronger demand in the coming weeks, driven by the clearing of auto inventories. This trend could lead to a slight uptick in alloy ingot demand, potentially tightening supply and supporting price stability in the near term.