Imported aluminium scrap prices in the Indian market have held steady at supportive levels despite a slight dip in LME (London Metal Exchange) prices. The three-month LME price hovered around $2,250 per tonne, marking a marginal decrease of $15 per tonne week-on-week. Stock levels were recorded at 568,525 tonnes, down by 1.2 per cent week-on-week, which had a nominal impact on LME prices.
Reports suggest that imported aluminium scrap prices have seen a modest increase of up to 0.9 per cent. Tense scrap from the UAE saw a rise of $10 per tonne, reaching $1,835 per tonne, while Zorba 95/5 from the UK remained steady at $2,040 per tonne CFR Mundra.
Reason for the surge in prices
The price surge can be attributed to supply constraints in scrap, fuelled by the strong demand from Asian markets. This trend has been putting pressure on profit margins for alloy producers. Moreover, ongoing challenges, such as geopolitical conflicts along shipping routes, have been influencing freight rates and causing shipment delays. These factors collectively contribute to the current dynamics of the aluminium scrap market in India.
Expectations indicate a potential easing of the current crisis by mid-April. According to trade sources, freight rates have reduced by $100-200 per tonne within Southeast Asian to South Asian routes.
UAE extrusion 6063
Regarding specific scrap prices, UAE extrusion 6063 scrap prices have risen by $10 per tonne to $2,180 per tonne CFR western coast India. Additionally, talk scrap from the UAE has surged by $165 per tonne to $4,655 per tonne.
Shifting focus to China's silicon 553 prices, they have remained rangebound and were observed at $2,020 per tonne CFR Mundra. The bidding trends have followed mainly those of metal futures, with moderate trading activity reflecting the limited inflow of scrap materials in the domestic market. This landscape hints at the current state of the aluminium scrap market, showing fluctuations and stabilizations across various segments.
Domestic market
In the local aluminium market, tense scrap prices currently command premiums of up to INR 180,000 per tonne. However, according to BigMint's assessment, the price is INR 179,000 per tonne ex-Delhi. Gujarat has reported tense scrap prices at INR 177,000 per tonne for immediate payment, reflecting the current pricing dynamics in different regions of the domestic market.
Received under the content exchange agreement with SteelMint
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