India's imported aluminium scrap prices see weekly gains amid LME increase

Imported aluminium scrap prices in India experienced a notable rise for the week, supported by the upward trend in LME futures prices.

Additionally, aluminium prices on commodity exchange market saw a rise in the week due to the US' and UK's sanctions on Russian metals, targetting revenue from exports, notably Russia which is one of the major producers in the world.

At the time of reporting, the three-month LME price was approximately at $2,538/t, reflecting a 3.2% increase compared to the previous week's $2,460/t. Stocks were recorded at 521,600 t, marking an outflow of 11,550 t w-o-w.

According to assessments by BigMint, aluminium imported scrap prices in India have risen by up to 3.4%, aligning with the upward trend in aluminium futures. Tense scrap from the UAE rose by $65/t to reach $1,965/t, while zorba 95/5, of UK origin, moved up by $30/t settling at $2,100/t CFR Mundra.

Buyers hesitant amid price hike

A trader source mentioned, "Aluminum scrap prices have surged significantly, with certain grades experiencing increases of more than $70-80/t. However, buyers are hesitant to purchase materials at these elevated levels."

The offers for wheels from the UK lacked firm offers for the week due to fluctuations in LME levels. Buyers were bidding $70-$80/t lower for wheels compared to the offered prices. However, BigMint's assessment for wheels stood at $2,410/t CFR Mundra, up by $70/t from the previous week. Similar trends were seen for talk scrap from the US and the Middle East, with a bid-offer disparity of 0.5-0.75%.

A manufacturer informed BigMint that small and medium-scale ADC12 manufacturers are opting for a prudent "wait and see" approach. Meanwhile, significant ADC12 manufacturers are actively negotiating for materials to secure at reasonable prices. It is worth to note that the spread between scrap to semi-finish has remained static despite increase in the ADC12 prices, mills are operating at INR 30,000/t spread instead of INR 35,000/t as per the earlier trend.

The bans imposed by the UK and US on Russian metal have contributed to price fluctuations leaving mixed opinions about the supply chain in the market.

China's silicon market improves

A supplier mentioned that the demand for silicon has picked up following the Qingming festival, showing a slight increase compared to the previous week. As per BigMint's assessment, prices of China's silicon 553 gained $25/t, settling at $1,850/t CFR Mundra.

Additionally, the tentative export prices (FOB) for silicon 441-grade stood at $1,880-$1,920/t and 553-grade stood at $1,800-$1,850/t.

Domestic scrap market firm

BigMint's assessment for tense scrap in the domestic market stood at INR 186,000/t. This reflects a slight increase of 1.6% from the previous week's INR 183,000/t, ex-Delhi. However, some scrap suppliers are currently offering tense scrap at a premium rate of INR 187,000/t.

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