Aluminium scrap prices in India record sluggish movement amidst dip in LME rates

During the week ending on May 10, 2024, the London Metal Exchange (LME) witnessed considerable volatility in the prices of most base metals. Three-month aluminium futures on the LME slid by 0.86 per cent to reach $2,529 per tonne, while nickel settled at $18,925 per tonne, marking a decline of 1.62 per cent. Copper prices closed at $10,004 per metric ton, zinc saw a modest uptick of 0.93 per cent to reach $2,930 per tonne, and lead prices edged up by 0.32 per cent to settle at $2,222 per tonne.

Domestic base metals markets generally trended downwards throughout the week, except zinc. The imported aluminium scrap market also experienced a downturn. Additionally, domestic prices for aluminium and copper registered declines. Conversely, zinc and lead prices exhibited slight upward movements.

Aluminium prices

This week in India, aluminium scrap prices showed sluggish movement amidst a slight decline in LME aluminium prices. The price decrease was attributed to the relaxation in imported raw material consignments. Presently, purchasing activity remains subdued as buyers opt for a cautious approach.

Imported aluminium scrap prices have remained relatively low without significant fluctuations upwards. LME prices experienced a minor decline after several weeks of steady increases. Moreover, trade activities in the market have been sluggish, prompting sellers to lower their offers to facilitate material liquidation.

According to BigMint's assessment, spot prices of aluminium ADC12 alloy ingot decreased INR 3,000 per tonne, reaching INR 216,000 per tonne week-on-week ex-works Delhi NCR. Notably, tense scrap prices were at INR 185,000 per tonne ex-Delhi, marking a weekly decrease of INR 2,500 per tonne. Consequently, the scrap-to-ADC12 spread has widened to INR 31,000 per tonne.

Copper prices

In the domestic market, copper armature prices were reported at INR 700 per tonne, ex-yard Delhi. Secondary CCR rods (99 per cent) witnessed a slight decline, settling at INR 835,000 per tonne ex-Delhi, marking a decrease of around 0.6 per cent week-on-week. Conversely, primary CC rods were observed at INR 880,000 per tonne, reflecting a 1.1 per cent increase. 

However, buyers remained cautious, adopting a wait-and-watch approach in anticipation of potential price adjustments. Turning to the imported segment, copper motors mix from the US was priced at $1,240 per tonne. Birch cliff from the US was traded at 92 per cent of LME CIF Mundra.

Other updates

On Thursday, aluminium stocks in London Metal Exchange-registered warehouses surged by 88 per cent, reaching 903,850 tonnes, marking their highest level since January 2022. India's consumer price inflation is anticipated to have moderated to 4.80 per cent in April, closely resembling March's rate. This easing trend is primarily attributed to persistent food inflation.