The Indian aluminium alloy ingot market has witnessed a price decline in recent weeks. However, there is some positive news to report. Raw material availability has increased, and there has been a drop in LME futures contracts, which has resulted in a w-o-w US$30-40 per tonne price decline.
Additionally, SteelMint has initiated a monthly price assessment for ADC12, which is in line with OEM approval and follows JIS Standards. The assessment was recorded at INR 195,000 per tonne recently.
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There was a period of scarcity of casting scrap, which has now improved w-o-w. Despite the decline in prices of ADC12, which can be attributed to significant selling pressure on slow demand in the market environment, trade sources report that the availability of casting scrap has increased.
In Q2 FY24, the settlement price for ADC12 by Hero was INR 200,000 per tonne, that of Honda was INR 203,300 per tonne, and MSIL prices for October were settled at INR 197,250 per tonne. The prices of ADC12 aluminium alloy ingots have descended w-o-w to INR 186,000-187,000 per tonne ex-Delhi, excluding GST.
However, India's primary aluminium producers, Balco and Nalco, reduced alloy ingot (ADC12) prices this week. After the revision, Nalco's prices stand at INR 218,050 per tonne (US$2,622 per tonne), while Balco's prices are at INR 219,950 per tonne (US$2,645 per tonne). All prices are ex, excluding GST.
The silicon market has been impacted by holidays in China, with domestic silicon 553 prices strengthening. China's silicon 553 prices stood at US$2,125 per tonne CIF west coast India, up US$10 per tonne w-o-w. Silicon is a crucial alloy material used in the aluminium industry.
In other news, there has been a substantial surge of over 20 per cent in automobile retail sales in India in September, driven by heightened demand across various vehicle segments coinciding with the onset of the festival season, according to the Federation of Automobile Dealers Associations (FADA). The overall automobile registrations soared from 15,63,735 units in September 2022 to 18,82,071 units last month, reflecting a robust year-on-year growth trend.
The analysis revealed a widespread expansion across segments, with two-wheeler sales increasing by 22 per cent, three-wheeler retail witnessing a remarkable 49 per cent rise, passenger vehicle sales growing by 19 per cent, and commercial vehicles also contributing to the positive trend with a 5 per cent sales growth. This surge in automotive sales underlines the positive momentum in the Indian automobile market during the festive season.
The short-term outlook is optimistic. The market is likely to rebound, supported by the emergence of bids in the wake of the Chinese market reopening, alongside optimistic sentiments in the domestic market as the festive season draws near.
Sourced from SteelMint
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