India: Imported aluminum scrap prices decrease by up to $130/t w-o-w

The Indian imported aluminium scrap market witnessed bearish trends and significant price contraction by up to $130/t w-o-w, SteelMint's assessment shows.

Middle East-origin aluminium talk prices showed a broad decline of $130/t to $4,400/t CIF Nhava Sheva today and the rest of the scrap grades showed a fall of around $30-50/t.

Trade participants' opinions have diverged as per current market dynamics. Most of the medium-scale importers have adopted a cautious approach by postponing bookings and anticipating further downward price corrections in the near term.

On the other hand, some established alloy manufacturers who are dependent on imported scrap had to procure some materials for smooth operations. They have shared that some trades occurred. However, they could not specify prices at the time of publishing this insight.

Amidst fluctuating market dynamics, some buyers booked material to meet immediate needs. Suppliers remained cautious as there is a significant difference of up to $50-60/t in bids and offers, reliable sources informed.

Meanwhile, some exporters based in the western region offered a slight discount level amid adequate material availability. Discounts of $20-30/t were heard given despite restrained offers from the Middle East owing to the Eid holidays.

When comparing the Far-East market, it is evident that Indian buyers have been more active and bids have improved in recent days.

Domestic scrap market scenario

Aluminium scrap prices moved down compared to the previous trading day, with tense prices standing at INR 157,000-158,000/t and utensil prices at INR 170,000/t, both exy-Delhi and excluding GST. The decrease in prices was attributed to weak demand. Leading market participants will give discounts, sources confirmed.

Further, aluminium casting scrap prices in the northern region seem to be slightly higher in comparison to Middle East-origin casting scrap with 5-6% ferrous attachment.

China's silicon prices edge up w-o-w

China's silicon prices rose by $15/t w-o-w to reach $1,885/t, resulting in low to moderate transaction activity along with better freights.

LME price trends

Aluminium prices on the London Metal Exchange (LME) remained in the range of $2,140-$2,230/t this week, fluctuating by $60-$70/t w-o-w, SteelMint observed.

Additionally, LME aluminium stocks declined by 17,900 t w-o-w to 537,775 t yesterday. Furthermore, aluminium futures prices on the Shanghai Futures Exchange (SHFE) stood at RMB 18,085/t ($2,508/t), a decrease of RMB 170-180/t ($23-25/t) w-o-w.