Spot prices for India's aluminium alloy ADC12 ingot declined by INR 3,000 per tonne, now standing at INR 216,000 per tonne week-on-week exw Delhi NCR. As per BigMint's latest assessment, tense scrap prices also saw a decrease, reaching INR 185,000 per tonne ex-Delhi, marking a weekly decline of INR 2,500 per tonne. This has widened the scrap-to-ADC12 spread to INR 31,000 per tonne.
Market sources have indicated that tense offers in Chennai are currently around INR 188,000 per tonne, while spot prices for ADC12 in Chennai range between INR 219,000 to INR 222,000 per tonne ex-works on immediate terms, excluding GST.
Trends in ADC12 market
Amidst the downturn in tense prices across the northern region, the pricing of semi-finished products has taken a hit, with a noticeable slowdown in purchasing inquiries for ADC12. Market observers have noted that prominent producers are gradually beginning to receive imported tense materials, albeit with significant delays. This development is alleviating the pressure on raw material prices, and there's an improvement in the availability of scrap in the domestic market.
A medium-scale manufacturer has voiced challenges in selling below the rates dictated by major automobile companies. However, taking into account the local tense prices and the easing of imported shipments, and to ensure steady destocking, they are presently selling below INR 218 per kilogram, albeit in reduced volumes.
South India increasingly favouring direct imports of ADC12
Many ADC12 manufacturers in southern India opt to import ADC12 directly instead of importing scrap and producing ingots. The current spread between tense and ADC12 in the southern market ranges from INR 33,000 to INR 35,000 per tonne.
"Malaysia is presently exporting a considerable amount of ADC12 to Chennai, indicating a noticeable increase in ADC12 inflow from the Asian region this month. This rise is particularly significant in Malaysia and Indonesia. Additionally, purchasers in Chennai are procuring at $2,585/t from Malaysia, with approximately 200 t of ADC12 purchased from them at $2,585/t, CFR Chennai," said a manufacturer in the area.
The Japanese market has been relatively inactive but is expected to resume activity by mid-May. Offers of ADC12 from the UAE to Japan are priced at $2,510 to $2,520 per tonne; however, suppliers currently find these levels unfeasible.
Based on BigMint's assessment, imported tense (6-7 per cent) from the US was assessed at $1,950 per tonne, down by $60 per tonne. Prices of Zorba 95-5 from the UK stood at $2,130 per tonne CFR Nhava Sheva. Meanwhile, three-month futures for aluminium were currently at $2,530 per tonne, indicating a $50 per tonne fall week-on-week.
China's ADC12 price
China's aluminium tense scrap price in Shanghai stood at RMB 16,050 per tonne following an increase of RMB 150 per tonne as of today. On the same day, the aluminium tense scrap price in Zhejiang and Jiangsu province recorded a growth of RMB 150 per tonne to settle at RMB 15,850 per tonne, respectively.
As per BigMint's assessment, prices of China's silicon 553 have increased by $50 per tonne, reaching $1,930 per tonne CFR Mundra. Additionally, tentative export prices (FOB) of silicon 441-grade stood at $1,880-$1,920 per tonne.
Outlook
Limited trading activity has been observed due to price fluctuations, with manufacturers awaiting price announcements from major automobile companies before accepting new orders. There is an anticipation that ADC12 prices may decline in alignment with tense scrap prices.
Received under the content exchange agreement with SteelMint
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