India’s ADC12 aluminium ingot price in Delhi drops marginally to INR215000/t W-o-W

BigMint's latest assessment indicated a slight decline in spot prices for aluminium ADC12 alloy ingots in Delhi NCR, now at INR 215,000 per tonne, week-on-week. Additionally, tense scrap prices fell by INR 3,000 per tonne to INR 185,000 per tonne ex-Delhi, with the scrap-to-ADC12 spread recorded at INR 29,000-30,000 per tonne.

In Chennai, tense scrap is priced at approximately INR 186,000 per tonne. Meanwhile, spot prices for ADC12 alloy ingots range between INR 216,000 and INR 217,000 per tonne ex-works, excluding GST. The price difference between tense scrap and ADC12 in Chennai stands at INR 30,000 per tonne.

Additionally, 3-Month LME aluminium prices have decreased by 4 per cent week-on-week to approximately $2,522 per tonne at the time of the latest report. According to BigMint's assessment, Tense scrap prices from the US dropped by $50 per tonne to $1,920 per tonne, while taint tabor prices (USA, HRB-3 per cent) were adjusted downward by $50 per ton to $2,025 per tonne.

India's ADC12 exports have seen a decline recently. Historically, Japan has been the main destination for India's ADC12 exports; however, demand in Japan has not yet rebounded. Consequently, higher domestic inventories in India have contributed to a slight decrease in prices and demand.

An alloy manufacturer and scrap buyer said, "Prices have declined following the drop in LME aluminium prices. However, buying activity has been significantly low as buyers are hesitant at current price levels and are waiting for further reductions."

Outlook                                                                                                          

Domestically, tense scrap prices have decreased by INR 3,000 per ton. According to BigMint's assessment, domestic tense scrap prices (ex-Delhi NCR) are now at INR 185,000 per tonne. A prominent automobile company has set its ADC12 prices at INR 223 per kg for July 2024, indicating a month-on-month rise of INR 1,250 per kg. This development has the potential to stimulate short-term price increases. Looking forward, with maintenance activities concluding and automobile companies resuming operations, prices are expected to gain upward momentum.

Received under the content exchange agreement with SteelMint