India's aluminium alloyed ingot imports rise over 25% m-o-m in July'24 on competitive pricing and surplus supply

In July 2024, alloyed imports into India saw a significant increase, largely driven by a combination of factors related to supply chain in China and Malaysia. Chinese and Malaysian producers, having accumulated more than sufficient stocks of alloyed ingots, began to offer their finished products at lower prices. The high prices of imported scrap, a critical input for ingots production, had previously inflated costs, but with the availability of excess material, these producers were keen to offload their surplus. The low finished prices from these suppliers made alloyed ingots imports more attractive to Indian buyers, especially those in the die-casting and automotive industries.

Additionally, the Free Trade Agreement (FTA) between Malaysia and India played a crucial role in boosting these imports. The duty-free status of ingots under this agreement further supported Indian companies to source material from Malaysia.

With the demand for semi finish cooling in China, Malaysian producers, in particular, found it beneficial to redirect their excess production to South India, where they could tap into a growing market. This confluence of favorable import prices, excess supply, and duty-free benefits under the FTA led to a marked rise in alloyed ingots imports during this period.

Impact of July 2024 price dip on ADC12 imports from Malaysia to Chennai

In July 2024, the average price levels of ADC12 in India from Malaysia ranged between $2,450-2,500/t, slightly lower than the levels observed in June, which were just above $2,500/t. This price drop made ADC12 imports from Malaysia to Chennai more attractive, leading to an increase in import activity. The competitive pricing in July, coupled with the duty-free benefits under the Free Trade Agreement (FTA) between Malaysia and India, prompted Indian manufacturers, particularly in Chennai, to increase their imports of ADC12 to capitalize on the more favorable rates.

Country wise alloyed ingots imports

Aluminium scrap imports saw almost firm levels m-o-m, boosting appeal of ingots imports

In July 2024, India's aluminium scrap imports rose marginally by 2.4% compared to the previous month to 171,604 t, However, imports were up by 4% compared to the same period last year.

Grade wise scrap imports

The import of Zorba declined by 6.7%, dropping from 42,915 t in June to 40,044 t in July. On the other hand, Taint Tabor imports saw a significant increase of 14.2%, rising from 34,736 t to 39,682 t. The Extrusion (Tread) category remained almost flat with a negligible decrease of 0.1%, maintaining around 24,075 t. Tense imports grew by 12.8%, up from 21,538 t to 24,298 t, and Talk imports also rose substantially by 14.8%, climbing from 9,271 t to 10,645 t.

Price trends