The Indian domestic aluminium alloy ingot market remained stable, thanks to several factors such as range-bound scrap, correction in futures contracts by US$50 to US$70 per tonne, and price cuts by primary producers by up to INR 3,750 per tonne ex-works. SteelMint's assessment showed that prices of ADC12 aluminium alloy ingots were steady at INR 188,000-190,000 per tonne exw-Faridabad, excluding GST.
The market for ADC12 aluminium alloy ingots in India is currently experiencing moderate demand, which has resulted in price levels that have remained relatively stable. One of the main issues faced by the industry is a limited supply of aluminium scrap tense, a crucial raw material for ADC12 production. As a result, some buyers in the northern region are offering a premium on prices.
Export contracts for ADC12 are currently in the range of US$2,180 per tonne to 2,190 per tonne CIF Japan, according to specific trade sources. Smaller and medium-sized aluminium alloy manufacturers continue to face challenges due to downstream industry adjustments, where production levels have been reduced by around 20-30 per cent due to limited orders.
China's silicon prices currently stand at US$1,820 per tonne to US$1,830 per tonne CIF west coast India. Steelmint's information compiled in July 2023 showed that automobile production had reached 2,087,087 units, indicating a 62,384 unit increase compared to June 2023.
The western region is facing material scarcity and limited trade, while the northern zone is experiencing limited material supply, as reported by a trade source. Some off-grade aluminium alloy ingots were traded for China, and the tentative price of Middle East-origin tense scrap was observed at US$1,550 per tonne to US$1,560 per tonne, constricted on a w-o-w scale.
Primary alloy ingot producers in India, Balco and Hindalco, have decreased alloy ingot (ADC12) prices by INR 3,750 per tonne or U$45 per tonne. Post-revision, Balco's prices stand at INR 206,250 per tonne or U$2,478 per tonne, while Hindalco's prices are at INR 207,500 per tonne or U$2,493 per tonne. All prices are exw, excluding GST.
The local aluminium scrap market witnessed a slight downward trend in prices d-o-d, with tense scrap prices largely stable at INR 155,000 per tonne and taint tabor scrap prices at INR 157,000-158,000 per tonne, both exy-Delhi and excluding GST.
In conclusion, trade sources suggest that the imminent price announcements by Maruti are expected to play a significant role in bolstering the market outlook for the forthcoming month. Therefore, sources project that there may be little contraction in prices in the near term.
Sourced from Steelmint under the content exchange agreement
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