India witnesses an upward shift in imported aluminium scrap prices post-holidays

The Indian market for aluminium scrap has seen a notable price increase, attributed mainly to a surge in futures contracts on the London Metal Exchange (LME) after the Christmas and New Year holidays. Despite a rise in transaction volume, particularly from the western region, many sellers remain inactive as market participants are still returning from their holidays.

As per Steel Mint's analysis, the reduced activity from Western countries has prompted customers to show a growing preference for Middle Eastern cargoes. This shift in preference has resulted in the conclusion of deals originating from the Middle East.

Scrap prices in the Middle East

Steel Mint's recent assessment for scrap in the Middle East indicates a tension-driven increase, reaching US$1,670 per tonne, with a week-on-week rise of $30 per tonne. Correspondingly, Extrusion scrap from the same region saw a US$40 per tonne surge, reaching US$2,140 per tonne CIF West Coast. Talk scrap from the Middle East witnessed a notable uptick of $45/t, attributed to recent hikes in copper's three-month LME cash prices, which currently stand at approximately $8,548/t. This surge has impacted the scrap market positively.

Talk scrap from the US

Some buyers and traders have reported acquiring material from the UK and the US, although sellers have yet to confirm these transactions. Reports suggest that Talk scrap from the US trades 53.3-53.5 per cent of three-month LME futures. Meanwhile, three-month futures for aluminium are currently at US$2,380 per tonne. LME warehouse inventories closed at 549,050 tonnes, reflecting a significant week-on-week increase of 44,575 tonnes.

Furthermore, according to a credible source, interruptions in the supply chain along the Red Sea route and unpredictable conditions might lead to shipping delays of around 1-1.5 months. According to industry participants, the Silicon metals market in China has seen a significant increase in pricing. This is attributed to the forthcoming Lunar New Year vacations and the country's environmental regulations. The price of silicon 553, originating from China, is around $2,155 per metric tonne, including cost, insurance, and freight (CIF) Mundra.

Indian market for recycled aluminium 

The Indian market for recycled aluminium has mirrored the actions of major industry participants and has raised prices compared to the previous day's closing rates. The current rates for scrap metal were INR 157,500 per metric tonne for tense scrap and INR 170,000 per tonne for utensil scrap, excluding GST, in the exy-Delhi region.

Received under the content exchange agreement with SteelMint