India: Imported aluminum scrap prices fluctuate, fall by up to $120/t w-o-w

The Indian imported aluminium scrap market witnessed volatile trends and significant price contraction in specific grades by up to $120/t w-o-w, SteelMint's assessment shows.

The US and Middle East-origin aluminium talk prices showed a broad decline by up to $120/t to $4,480/t and $4,350/t CIF Nhava Sheva today. The rest of the scrap grades showed a divergent trend as some showed a fall of around $5-50/t while others were up by around $10-50/t w-o-w.

A cautious approach has been adopted by the majority of medium-scale importers who have decided to postpone their bookings and look for reasonably stable material-sourcing regions.

The current situation in the domestic market reveals a tight supply of taint tabor and extrusion, which has led to an improved demand for these particular grades and created a healthy environment for buyers.

At present, the European region is experiencing limited offers for aluminium exports. This scarcity in supply has resulted in a challenging situation for buyers who are seeking to procure aluminium scrap in the market.

Aluminium alloy ingot producers continue with a measured capacity utilisation ratio that remains consistent with the previous week, impelled by current market dynamics.

The appreciation of the currency has resulted in a reduction of additional costs compared to the previous month, by approximately INR 400-500/t.

Domestic scrap market scenario

Aluminium scrap prices moved down compared to the previous trading day, with tense prices standing at INR 155,000-156,000/t and utensil prices at INR 169,000/t, both exy-Delhi and excluding GST. The decrease in prices was attributed to weak demand. Leading market participants will give discounts in some specific grades, sources confirmed.

China's silicon prices are almost firm

China's silicon prices remained almost firm w-o-w at $1,880-1,890/t CIF Mundra.

LME price trends

Aluminium prices on the London Metal Exchange (LME) remained in the range of $2,150-$2,200/t this week, fluctuating by $40-$50/t w-o-w, SteelMint observed.

Additionally, LME aluminium stocks increased by 5,625 t w-o-w to 542,050 t yesterday. Furthermore, aluminium futures prices on the Shanghai Futures Exchange (SHFE) stood at RMB 17,965/t ($2,488/t), a decrease of RMB 110-120/t ($15-17/t) w-o-w.

Outlook

The market has already witnessed a consistent two-week period of narrowing prices. Thus, trade partners expect slight price contractions due to limited domestic demand.