India's imported aluminium scrap prices remain supported despite correction in futures
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Imported aluminium scrap prices in the Indian market displayed supportive levels despite a minor contraction in LME prices.
The three-month LME price was around $2,250/t, a marginal fall of $15/t w-o-w, Stocks were recorded at 568,525 t, down by 1.2% w-o-w making nominal variation in LME prices.
According to assessments by BigMint, aluminium imported scrap prices have increased slightly by up to 0.9%. Tense scrap from the UAE rose by $10/t to reach $1,835/t, while Zorba 95/5, UK origin, remained firm at $2,040/t CFR Mundra.
Supply constraints in scrap, fuelled by high demand from Asian markets, are driving up prices and narrowing profit margins for alloy producers. Ongoing challenges, such as the geopolitical conflicts along the shipping routes and influencing freight rates as well as shipment delays.
Expectations suggest that the present crisis may begin to ease by mid-April. Freight rates have been reduced by $100-200/t within Southeast Asia to South Asia, as per trade sources.
UAE extrusion 6063 scraps also saw a $10/t rise to $2,180/t CFR western coast India, while talk scrap from the UAE rose by $165/t to $4,655/t.
Meanwhile, China's silicon 553 prices remain rangebound and were at $2,020/t CFR Mundra.
The majority of bids have followed the trend of metal futures, and there has been moderate trading activity reflecting limited inflow of scrap materials in the domestic market.
Domestic market
In the domestic aluminum market, tense scrap prices are currently trading at premiums of up to INR 180,000/t However, BigMint's assessment price stands at INR 179,000/t, ex-Delhi. Gujarat reported tense scrap prices at INR 177,000/t for immediate payment.
Recent deals for CIF WC India
UAE origin Taint tabor C/S (7-9%) was traded at $1,700/t - 50 t.
USA origin talk was traded at 53.5% LME prices ~ 50 t.
USA origin taint tabor HRB (2-3%) was traded at $1,840/t ~ 30 t.
USA origin Zorba 98/2 bought at $2010/t, CFR Mundra - 120 t
