India aluminum scrap prices decline in line with MCX aluminium

The major aluminium scrap commodities dropped on Scrap Register Price Index as on Friday, September 18. India's major scrap commodities like aluminium accessories scrap, aluminium rod company, aluminium rod local, aluminium sheet cutting, aluminium wire scrap traded down on Friday.

The most active September aluminium contract on Multi Commodity Exchange (MCX) settled down by 1.114% to INR 106.550 per kilogram on Friday from previous close of INR 107.75 per kilogram.

The MCX aluminium prices touched an intra-day high of INR 108.25 per kilogram and an intra-day low of INR 106.40 per kilogram during Friday. The open interest of the contract stood at 2878 lots.

Aluminium futures prices at MCX settled down after the Federal Reserve left U.S. rates unchanged stoking concerns over the strength of the global economy.

European and U.S. equities headed lower after the Fed's move last week to keep rates unchanged, a decision driven by worries about the global economy, financial market volatility and sluggish inflation at home. A U.S. aluminium industry body has called on federal authorities to investigate allegations that Chinese producers are improperly labelling their exports, flooding the market and driving down global prices.

Chinese aluminum smelters will cut output, should aluminum prices remain low for a long time. Japanese spot aluminum import premiums fell as a keen seller emerged on the back of widening backwardation in the October-November London Metal Exchange aluminum contract spreads.