India's aluminium scrap imports decline in Sep'23 after hitting 20-month high

In September 2023, India's aluminium scrap imports experienced a substantial decline of 15% m-o-m, totaling 157,642 tonnes (t), in contrast to the 184,994 t recorded in August 2023. It is noteworthy that August 2023 marked a peak in scrap volume with a 20-month high, as indicated by provisional data from SteelMint.

The overall aluminium imports comprising aluminium scrap, finish and semi-finish products stood at 227,532 t in September 2023, down by 11% m-o-m compared against 256,611 t. However, on a y-o-y basis, the import volume increased by 11%.

Grade-wise scrap import

During September 2023, imports of Zorba scrap saw a notable 29% m-o-m decline, dropping to 34,470 tonnes from the previous month's 48,512 tonnes. This reduction in scrap import volume can be attributed to the robust export prices for this specific grade, which remained firm despite the contraction in LME futures, collectively resulting in a reduced import volume.

Imports of taint tabor decreased by 9%, totalling 38,710 t in September compared to 42,364 t in August. Extrusions experienced a 10% decline in September 2023 to 24,347 t compared to the previous month. This drop in imports was attributed to the relatively cheaper domestic material than the imported materials.

Similarly, other aluminium grades, like tense saw a 7% decline to 20,914 t from 22,382 t in August 2023 and talk decreased by 14% to 10,596 t from 12,294 t in the previous month.

In September 2023, the northern region continued to be the primary importer, receiving approximately 68,188 t. However, this decreased from the 88,373 t imported in August 2023. The decline in scrap imports in the northern region was primarily due to reduced demand from buyers.

Country-wise

In September, the United States, with 47,153 t, recorded a significant drop of 13% m-o-m in scrap exports to India. The United Kingdom also saw growth, exporting 14,659 t, saw a 6% decrease. Similarly, Saudi Arabia being the third-largest exporter to India with 11,602 t in September 2023, it witnessed a decline of 10% m-o-m.