India's imported aluminium scrap prices continue to rise w-o-w

Imported aluminum scrap prices in the Indian market are rising, driven by a number of factors. This includes the upward surge in aluminium LME levels, a scarcity of material both domestically and globally, and the escalating freight rates.

The three month LME price was around $2,260/t, a rise of $40/t w-o-w, Stocks were recorded at 577,675 t, down by 1% w-o-w making LME prices to rise.

According to assessments by BigMint, aluminum imported scrap prices have increased by up to 2.6%. Tense scrap from the UAE rose by $35/t to reach $1,825/t, while zorba 95/5, UK origin, increased by $10/t to $2,040/t CFR Mundra.

UAE extrusion 6063 scrap also saw a $25/t rise to $2,170/t CFR western coast India, while talk scrap from the UAE rose by $80/t to $4,490/t.

A continual shortage of tense scrap in both local markets has led to a rise in prices in the northern region.

Meanwhile, China's silicon 553 prices rose by $15/t and was at $2,025/t, CFR Mundra.

"Most of the bids have evolved as per the metal futures trend and moderate trade activities have been recorded in line with limited scrap material inflow in the domestic Indian market" shared a recycler based in the Middle East region.

A second trade participant based in the northern Indian market shared that "the market is having positive sentiments for raw materials as semi-finished products specifically alloy grades are dominating the overall trades and most of the established buyers are willing to keep the premiums high as per the market dynamics".

Further, a few opinions by small and medium alloy manufacturers shared highlighted that "due to tight procurement in the domestic market, we are unable to speed up the full operational cycle and somewhere it affects the monthly conversion spread".

Domestic market

In the domestic aluminum market, tense scrap prices are currently trading at premiums by up to INR 178,000/t However, BigMint's assessment price stands at INR 175,000/t, ex-Delhi. Gujarat reported tense scrap prices at INR 175,000/t on a credit basis and INR 173,500/t for immediate payment.

Recent deals for CIF WC India

• USA origin Zorba 95/5 was traded at $2,050/t ~ 45 t.
  
  
• UAE origin extrusion was traded at $2,160/t - 50 t.
  
  
• UAE origin taint tabor was traded at $1,980/t - 25 t.
  
  
• UAE origin talk (fe) was traded at 51% LME prices - 20 t.
  
  
• USA origin taint tabor HRB was traded at $1,820/t ~ 45 t.
  
  
• USA origin extrusion 95/5 was traded at $1,950/t - 50 t.
  
  
• USA wheels was traded at $2,200/t ~ 38 t.
  
  
• USA tense (5-7%) was traded at $1,870/t ~ 50 t.
  
  
• Europe origin tense (2%) was traded at $1,980/t, CIF WC Damaiyu ~ 70 t.
  
  
• USA origin Taint tabor (2-3%) was traded at $1,820/t ~ 45 t.
  
  
• USA origin Telic clean traded at $1,650/t recently ~50 t.
  
  

Outlook

Moderate trade activities and a constrained supply chain for certain grades, coupled with the potential price increase of semi-finished materials by major automobile companies, could contribute to sustained prices in the short term.