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

• Many manufacturers currently operating at loss
  
  
• High inventories in auto sector raise concerns

  Domestic spot prices of aluminium ADC12 alloyed ingots inched down w-o-w in both the northern and southern regions of the country, pressured by weak demand and declining domestic raw material costs.
  
  

BigMint's benchmark assessments for ADC12 (non-OEM) grade stood at INR 203,000/tonne (t) in Delhi and INR 205,000/t in Chennai, down INR 3,000/t w-o-w.

Meanwhile, three-month London Metal Exchange (LME) aluminium prices hovered at around $2,590/t, up $50/t w-o-w. Stocks at LME-registered warehouses stood at 767,850 t.

Domestic aluminium ADC12 alloyed ingot prices trended down, with slight variations. Although some transactions took place, overall demand was muted.

Weak automotive demand, high inventory levels impact ADC12 prices

A manufacturer informed BigMint that "the decline in ADC12 prices is mainly driven by weak demand and high inventory levels in the automotive sector. This has reduced aggressive purchasing, leading to downward pressure on prices."

A trader mentioned, "Suppliers are offering raw materials even at a discount of INR 3,000-4,000/t in the local market to maintain cash flow amid reduced demand."

Imported scrap trends

Imported aluminium scrap offers into India decreased by up to 2.6% w-o-w as aluminium prices on the London Metal Exchange (LME) edged down after witnessing a four-month high recently.

BigMint's benchmark assessments showed that tense from the UAE was priced at $1,760/t, down by 1.1% w-o-w, while zorba 95/5 from the UK was at $2,080/t, both CFR west coast, India.

Chinese silicon prices inch down

According to BigMint's assessment, prices of China's silicon 553 went down w-o-w to $1,700/t CFR Mundra. Meanwhile, offers from the suppliers' side were at $1,740-1,750/t, and 553-grade prices in Europe held steady at EUR 2,200-2,300/t ($2400-2500/t) DDP Europe works.

Pakistan market

Off-grade ADC12 from Pakistan was traded at $2,300/t CFR Port Ningbo. Pakistan's aluminium alloyed ingots with a high zinc content of 4-5% were at $2,250/t CFR Port Ningbo.

Domestic scrap prices fall

In the domestic market, tense scrap prices went down w-o-w in both Delhi and Chennai. According to BigMint's assessment, domestic tense scrap prices stood at INR 171,000/t ex-Delhi NCR and INR 172,000/t ex-Chennai.

A prominent automobile manufacturer has announced its ADC12 prices for November 2024 settlements at INR 209,900/t, reflecting a reduction of INR 6,000/t from October's price of INR 215,900/t. This marks the lowest price level seen in eight months.

Prices/offers for the week - imported ADC12 and special alloys

• ADC12 offers from India to Japan - $2,450-2,480/t
  
  
• Cyprus-origin ADC12 to CFR Mundra - $2,350/t
  
  
• ADC12, UAE, CFR Mundra - $2,400-2,420/t
  
  
• ADC12, Malaysia, CFR Chennai - $2,400-2,430/t
  
  
• A356, UAE, CFR Mundra - $2,730-2,750/t
  
  
• LM6, UAE, CFR Mundra - $2,550-2,560/t
  
  
• LM24, UAE, CFR Mundra - $2,570-2,580/t
  
  

Outlook

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