The Indian aluminium scrap market has experienced a significant increase in prices owing to the rise in futures contracts on the London Metal Exchange (LME). Despite this, transactions in the western region have been limited due to the absence of major trade participants with the Christmas festival approaching.
Tight non-ferrous scrap prices in local markets across Europe and the US have caused upward pressure on export offers for various scrap grades. The slow accumulation of non-ferrous scrap in local markets has led suppliers to seek higher prices in international trade.
SteelMint's latest assessment of Zorba 95-5, UK-origin, shows a rise of $55 per tonne, with the current price standing at $1,955 per tonne. Market participants indicate a positive shift in prices by $60-70 per tonne week-on-week across grades of aluminium.
The current market scenario favours other major scrap supply regions like the Middle East, where Tense scrap prices have been assessed at $1,575 per tonne, reflecting an increase of $35 per tonne week-on-week, as per SteelMint's assessment. Tense and Taint Tabor scrap are currently securing improved deals from the Middle East, driven by the influence of European and US markets. This suggests an upswing in near-term prices, signalling a rebound.
There has been a rise of up to $175 per tonne in talk scrap from the US and the Middle East, owing to the recent hikes in copper's three-month LME's cash prices, which currently hover around $8,530 per tonne. The three-month futures for aluminium currently hover at $2,272 per tonne, reflecting a weekly increase of approximately $136-138 per tonne. Inventories in the LME warehouses stood at 504,475 tonnes at the close of yesterday's trading, significantly up by 52,100 tonnes week-on-week.
In China, the silicon metals market is facing challenges due to a water shortage leading to increased electricity prices. This has led to some silicon metal factories halting production. Additionally, winter weather, including frequent snow, has raised transportation costs. China-origin silicon 553 is currently available at around $2,075 per tonne, CIF Mundra.
If you wish to learn about the recycled aluminium sector, please read AL Circle's specifically curated report on the same, World Recycled Aluminium Market Analysis.
In the Indian aluminium scrap market, Tense scrap prices stood at INR 153,000 per tonne, while utensil scrap prices were at INR 165,000 per tonne exy-Delhi (excluding GST). Market participants anticipate that the prices of imports from the Middle East may rebound during the holidays due to the closure of the US and EU markets. However, there may be requirement-based imports.
sourced via the content exchange agreement with SteelMint
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