India's aluminium ADC12 alloyed ingot prices edge down w-o-w

• Lacklustre exports lead to domestic supply glut
  
  
• Prices to remain stable despite rising LME levels
  
  

Domestic spot prices of aluminium ADC12 alloyed ingots were range-bound w-o-w, with a marginal decrease, in both the northern and southern regions of the country, pressured by weak demand and stable domestic raw material costs.

BigMint's benchmark assessments for ADC12 (non-OEM) grade stood at INR 206,000/tonne (t) in Delhi and INR 208,000/t in Chennai, down INR 1,000/t w-o-w.

Domestic aluminium ADC12 alloyed ingot prices remained steady with minimal fluctuations. While some transactions were recorded, overall demand remained subdued.

Meanwhile, three-month London Metal Exchange (LME) aluminium prices hovered at around $2,560/t, down $120/t w-o-w. Stocks at LME-registered warehouses stood at 777,775 t.

A producer told BigMint, "Falling ADC12 prices are primarily due to weak demand and high inventory levels in the automotive sector. This has limited aggressive buying, putting pressure on prices."

A manufacturer source explained, "Prices are not increasing due to the abundant supply in the market. With Indian exports underperforming, the surplus material is being redirected to the domestic market, leading to an oversupply and pushing prices down."

A trader source mentioned, "Suppliers are offering raw materials at a discount of INR 1,000-2,000/t in the local market to maintain cash flow amid reduced demand."

Imported scrap trend

Imported aluminium scrap offers into India increased by up to 4% w-o-w, with aluminium prices on the London Metal Exchange (LME) hitting a 4-month high recently.

BigMint's benchmark assessments showed that tense from the UAE was priced at $1,780/t, down by 1.1% w-o-w, while zorba 95/5 from the UK was at $2,100/t, both CFR west coast, India.

Chinese silicon prices inch up post-holidays

According to BigMint's assessment, prices of China's silicon 553 went up w-o-w to $1,720/t CFR Mundra. Meanwhile, offers from the suppliers' side were at $1,740-1,750/t.

Domestic prices for 553-grade silicon metal were steady at RMB 11,300-11,500/t delivered to ports today, unchanged w-o-w. Spot activity remained limited, with aluminium alloy and silicon powder producers closely watching market trends post-holiday. Despite thin profit margins, metal producers were reluctant to lower offers.

Prices for 441-grade metal also stayed flat at RMB 11,800-12,000/t during the same period.

Domestic scrap market

In the domestic market, tense scrap prices remained largely stable w-o-w in both Delhi and Chennai. According to BigMint's assessment, prices are now at INR 175,500/t ex-Delhi NCR and INR 176,500/t ex-Chennai.

Outlook

In the near term, prices are likely to remain stable within a tight range as major automakers implement price cuts, despite the rising trend in LME aluminium prices. However, trading activity is expected to gain momentum with the onset of the festive season.