India: Imported aluminium scrap prices show divergent trends
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India's imported aluminium scrap prices have remained volatile this week amid a marginal drop in LME aluminium prices. Moreover, the European market remained far less active owing to the ongoing summer break.
Meanwhile, three-month LME aluminium prices were at $2,440/t, down 0.5% w-o-w. Stocks at LME-registered warehouses stood at 970,725 t, down 2% w-o-w.
According to BigMint's assessment, tense scrap from the Middle East, particularly the UAE, settled at $1,870/t and zorba 95/5 from the UK at $2,040/t CFR west coast, India.
Meanwhile, offers for US taint tabor HRB (2-3%) were at $2,000/t. Bids, however, are slightly lower. Prices for US taint tabor HRB (2-3%) are at $1,980/t CFR Mundra.
Prices of US tense (6-7%) are assessed at $1,930/t CFR Mundra. However, suppliers were heard offering at $1,980/t levels and buyers' bids remained lower by $50-$60/t, indicating a bid-offer disparity in the market.
Offers from Middle East have kept diverging during the Muharram holidays.
Buyer sentiment
A buyer said, "Higher freight rates for India are causing buyers to adopt a wait-and-see approach. Suppliers are diverting aluminium to the Far East due to better realisations."
Medium and small traders are facing challenges in securing scrap because of price volatility. This uncertainty in pricing has made it difficult for them to maintain consistent supplies.
As a result, many traders are choosing to adopt a wait-and-see approach, hoping for market conditions to stabilise before making further purchases.
China's silicon market
Prices of China's silicon 553 have dropped $100/t reaching $1,900/t CFR Mundra amid easing freight rates. However, buying interest has stayed low because major aluminium alloy manufacturers have sufficient silicon supplies leading to reduced market activity.
Additionally, the freight rate from China to Mundra was heard at $3,200-$3,400 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 standing at INR 180,000/t and INR 181,000/t ex-Chennai.
Global updates
Japanese aluminium buyers have agreed to pay two global producers a premium of $172/t for July to September shipments, up 18% from the previous quarter, sources said. This is higher than the $145-$148/t paid in April-June but lower than initial offers of $175-$190. These premiums set the regional benchmark over the LME cash price.
Deals:
Silicon 553 from China booked at $1,900/t CFR Mundra.
South African Tense (2-3%) booked at $1970/t CFR Chennai.
UK Wheels booked at $2,350/t CFR Mundra.
Zorba (multiple grades including 95/5) booked at $2,020-2,030/t CFR Mundra and Chennai.
Shredded TT 2-3% UK traded at $2065/t CFR Nhava sheva.
EU talk traded at 53.25% CFR nhava sheva
African wheels traded at $2,385/t to CFR Mundra
Outlook
Offers for aluminium scrap from Europe will decrease due to the holidays, while offers from the US are expected to remain firm as the summer break begins. Buyers' interest is expected at levels $15-20/t lower than prevailing offers, BigMint notes.
