India’s ADC12 aluminium ingot prices fall by INR 3000/t M-o-M despite steady raw materials cost

Aluminium ADC12 alloy ingot prices fell by INR 3,000 per tonne to INR 192,000 per tonne despite steady raw material costs, namely casting scrap pricing, exw Delhi. The monthly average prices of tense scrap in India remained consistent at INR 155,000-156,000 per tonne exy Delhi. However, the imported tense scrap prices from the Middle East declined by USD 30-40 per tonne, reaching USD 1,575 per tonne in October compared to USD 1,610 per tonne in September 2023.

The UK-origin Zorba import scrap prices fell by roughly USD 30 per tonne and were announced at around USD 1,820 per tonne, while raw material costs such as silicon 553 from China saw a sufficient downward adjustment in recent weeks.

It has been observed that several established industry participants are actively engaged in efforts to reduce raw material expenses and improve their technological capabilities to respond to changing market conditions and achieve improved financial outcomes.

In the Indian market, the month of September had a significant increase of almost 15 per cent in the sales of automobiles. The Society of Indian Automobile Manufacturers (SIAM) said that there was a significant increase in demand for vehicles across many categories, which coincided with the festival season.

The total number of automotive sales significantly increased, from 2,073,228 units in August 2023 to 2,268,572 units in September. On a year-over-year basis, there was a 5 per cent rise in unit sales from 2,170,463 units in September 2022, suggesting a favourable trend in year-over-year growth.

Year-on-year growth in many sectors is considerable, with two-wheeler sales increasing by 1 per cent, three-wheeler retail increasing by 47 per cent, passenger vehicle sales hiked by 18 per cent, and commercial vehicle sales rising by 7 per cent. This total increase in car sales highlights the positive momentum in the Indian automobile sector throughout the holiday season. Data reveals an 11.7 per cent rise in two-wheeler sales, an outstanding 15 per cent increase in three-wheeler retail, a moderate 0.7 per cent increase in passenger car sales, and constant commercial vehicle sales.

The explanation for Aluminium alloy ADC12 ingot pricing between spot and term depends on a few criteria, including maintaining a three-month supply of raw materials obtained from outside countries, mainly the Western region and some from the Middle East region. Holding enough stocks on-site, the liquidity cycle, logistics with defined quantities in one consignment, and credit payment conditions resulted in increased operating costs.

According to the prevailing dynamics of the car industry, the Indian market had robust sales volumes on a monthly and annual basis in anticipation of the upcoming holiday season. This can be attributed to the majority of plants maintaining a minimal capacity utilisation ratio, which has the potential to bolster prices shortly.

Received under the content exchange agreement with SteelMint