India's imported aluminium scrap prices edge higher tracking LME uptrend

Imported aluminium scrap prices in India experienced a slight increase, supported by the upward trend in LME futures prices.

At the time of reporting, the three-month LME price was approximately at $2,460/t, reflecting a 3.4% increase compared to the previous week's $2,380/t. Stocks were recorded at 533,150 t, showing a 3.3% decrease w-o-w.

According to assessments by BigMint, aluminium imported scrap prices in India have risen by up to 2.9%, aligning with the upward trend in aluminium futures. Tense scrap from the UAE rose by $20/t to reach $1,900/t, while zorba 95/5, of UK origin, moved up by $10/t settling at $2,070/t CFR Mundra.

Market review

A scrap buyer shared that despite the price rise, trade activities from the Middle east have continued at a slower pace due to the ongoing Ramadan period amid limited offers.

Another scrap buyer shared that the market is facing shortage not only of casting scrap but also taint tabor and other materials. This scarcity has somewhat led to price increases and created disparities between bids and offers.

China market overview

Chinese silicon prices are once again experiencing a decline. Despite strong demand for polysilicon in solar power generation, user interest in purchasing has waned due to increased use of aluminum alloys and a downturn in organic silicon utilisation. As a result, speculators' buying support has hit a ceiling, leading to a drop in commodity prices by approximately $200/t from late March to April.

Current export prices (FOB) show reductions across various silicon grades: "2202" is now priced at $2,500-$2,600/t (down $50/t from mid-January), "3303" at $2,020-$2,070/t (a decrease of $180-$190/t), "441" at $1,960-$2,000/t (down $210/t), and "553" at $1,880-$1,930/t (a decline of $180-$200/t).

Silicon prices have decreased due to weak demand in the market. China had gone on a long weekend due to local festival. Meanwhile, prices of China's silicon 553 dropped $65/t, settling at $1,825/t CFR Mundra.

Domestic market

BigMint's assessment for tense scrap in the domestic market stands at INR 183,000/t. This reflects a slight increase of 1.1% from the previous week's INR 181,000/t, ex-Delhi. However, some scrap suppliers are currently offering tense scrap at a premium rate of INR 184,000/t.

Outlook

Trade activities on the imported aluminum scrap market are expected to gradually rise after Ramadan. Nonetheless, uncertainty persists due to the upcoming election, and this may lead to fluctuations in short-term prices which may rise from a moderate to high level.