India: Imported aluminium scrap prices show weekly gains amid LME uptrend

Imported aluminium scrap prices in India drifted higher w-o-w amid a rise in LME aluminium prices. Meanwhile, transactional activities remained on the lower side for few grades due to significant bid-offer disparities seen in the market.

Meanwhile, the three-month LME aluminium prices hovered at $2,530-$2,540/tonne (t), up 8.3% w-o-w. Stocks at LME-registered warehouses stood at 817,350 t. According to LME data, aluminium prices are currently hovering at a 2-week high.

BigMint's assessments

BigMint's benchmark assessments show that tense from the UAE was priced at $1,810/t, up 1.1% w-o-w, while zorba 95/5 from the UK was assessed at $2,070/t, both CFR West Coast, India.

Talk originating from the US was assessed at $4,950/t, while talk scrap from the Middle East was priced at $4,720/t, both down by up to 2% w-o-w, CFR West Coast, India, and offers from Columbia heard at 52.5% to CFR Chennai.

This week, BigMint's report indicates a $30/t rise in US taint tabor prices, bringing them to $1,980/t CFR on India's west coast. Suppliers are offering prices between $2,010 and $2,030/t, while bids remain around $1,950 to $1,960/t, highlighting a significant gap between bids and offers. The elevated offer prices are primarily due to a shortage of material in the market. This supply constraint, particularly from the US, has also driven up taint tabor prices in the UAE to $2,160/t.

US TT HRB (2-3%) bought at $1980/t, CFR Mundra

Furthermore, the rising global demand for imports has brought prices in line with the LME, resulting in a more volatile market with uneven business activity across different regions. The price instability is prompting suppliers to hold off on transactions, waiting for the market to stabilise, while buyers are hesitant to commit due to concerns about further volatility.

Aluminium tense clean is priced at AED 7,000/t ($1,900/t) in Dubai, having dropped by AED 50-60/t due to sluggish domestic demand. Prices are expected to rise after September, as the export market is currently performing well, in line with LME futures.

• Al tense scrap (8-9%), CFR West Coast, Middle East: $1,820/t

  Recent trade at $1,800/t recently.
  
  

• Al taint tabor scrap (briquetted, clean), CFR West Coast, Middle East: $2,170/t

  Recent trade at $2,150/t recently.
  
  

• Al extrusion 6063 scrap, CFR West Coast, Middle East: $2,380/t

  Recent trade at $2,350/t recently.
  
  

China's silicon market

According to BigMint's assessment, prices of China's silicon 553 stood lower w-o-w at $1,680/t CFR Mundra. Meanwhile, offers from suppliers' side were at $1,720-1,730/t levels and bids were heard at $1,660-1,680/t levels.

Sea freight rates from China to Mundra have remained largely stable w-o-w, ranging from $1,500 to $1,600/20 foot container.

Silicon prices have eased slightly as China observes the Mid-Autumn holiday, China silicon 553 bought at $1650/t, CFR Chennai recently.

Domestic scrap market

In the domestic market, tense scrap prices inched up w-o-w in both Delhi and Chennai. According to BigMint's assessment, domestic tense scrap prices are now at INR 175,000/t ex-Delhi NCR and INR 176,000/t ex-Chennai.

Outlook

In the days ahead, prices are expected to remain positive due to rising LME aluminium prices. Trading activity is also anticipated to pick up with the arrival of the festive season next month.