As per reports, the Indian imported aluminium scrap market has lately experienced an increasing trend in pricing, indicating a jump in futures contracts and price changes made by key industry participants. However, domestic demand has remained low, mostly due to the upcoming Diwali vacations.Significantly, there exists a substantial disparity in pricing, amounting to around $50-60 per tonne, between the proposed rates for Taint Tabor (TT) cut and sheared 7-8 per cent attachment and Zorba 94/4. Furthermore, there has been a need for more solid bids in this regard.
According to industry players, there is a consensus that the trade of scrap material from Malaysia is now not feasible for the Indian market. This has led sellers to investigate alternate markets that provide more advantageous returns. The main aluminium manufacturers in India have recently implemented a price increase of INR 7,500 per tonne ($90 per tonne) for aluminium ingots, namely of the P1020 grade with a purity level of 99.7 per cent. After adjustment, the current prices of Hindalco have reached INR 222,250 per metric tonne (equivalent to 2,670 USD per metric tonne). All prices shown are ex-works and do not include Goods and Services Tax (GST).
Although there may be a workforce scarcity in the market after Diwali, market participants anticipate agreements to be completed provided futures prices fluctuate less. Furthermore, there needs to be more demand for silicon 553, which has put downward pressure on pricing owing to mill stockpiles stacking up, leading to a drop in imported material costs.
Compared to yesterday's close, India's aluminium scrap market stayed constant. Tense scrap prices were INR 155,000 per tonne exy-Delhi (excluding GST), while utensil scrap prices were INR 171,000 per tonne exy-Delhi (excluding GST). Market players are experiencing liquidity concerns, and slow buyer demand has resulted in market stagnation. At the time of writing, LME aluminium futures were down 0.3 per cent to $2,260 per tonne.
Received under the content exchange agreement with SteelMint
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