India’s imported aluminium scrap prices experience weekly gains owing to upward trend in LME prices

This week, India's imported aluminium scrap market saw a notable uptick, buoyed by the positive trajectory of LME futures prices, which surged by $50 per tonne week-over-week (W-o-W) to hit $2600 per tonne. As of the latest report, the three-month LME price stood at approximately $2,600 per tonne, reflecting a 2.5 per cent increase from the previous week's $2,550 per tonne. Concurrently, stocks were recorded at 500,000 tonnes, marking a 3.4 per cent decrease week-over-week.

Sanctions pushed aluminium prices upwards

The surge in aluminium prices on the commodity exchange market during the week can be attributed to the sanctions imposed by the US and UK on Russian metals, alongside concerns of supply chain disruptions stemming from ongoing geopolitical tensions. As one of the key players in the global aluminium production landscape, Russia notably felt the effects.

BigMint assessments indicate that aluminium imported scrap prices in India surged by up to 2.9 per cent, mirroring the upward trajectory in aluminium futures. Tense scrap originating from the USA saw a $20 per tonne increase, reaching $2,000 per tonne, while Zorba 95/5, sourced from the UK, climbed by $60 per tonne to settle at $2,160 per tonne CFR Mundra.

An Indian automotive giant disclosed its monthly settlement price for ADC12, elevating it by INR 5,000 per tonne to INR 217,800 per tonne for May. Nonetheless, industry insiders speculate that this hike is primarily attributed to the sustained escalation in raw material prices within the domestic market. It's worth noting that OEM prices typically maintain a premium over spot market rates. However, observations suggest that the OEM's pricing strategy is less assertive than the prevailing market dynamics.

Market sources shared, "there's a shortage of Wheels, Taint tabor, and Tense. There's also a slight material shortage from the Middle East, which is pushing prices up. Buyers aren't keen on purchasing material right now; the market seems quite volatile, and people are adopting a wait-and-see approach. However, it doesn't seem like the market will stabilize soon due to the shortages and geopolitical tension."

According to BigMint's assessment, the price for wheels reached $2,450 per tonne CFR Mundra, marking a $40 per tonne increase from the previous week. The bans imposed by the UK and US on Russian metal have introduced price fluctuations, triggering divergent opinions regarding the stability of the market's supply chain.

Other prices

Based on BigMint's analysis, China's silicon 553 experienced a price increase of $30 per tonne, reaching $1,880 per tonne CFR Mundra. Moreover, tentative export prices (FOB) for silicon 441-grade was reported at $1,880-$1,920 per tonne, while 553-grade silicon was priced between $1,800-$1,850 per tonne.

According to BigMint's evaluation, tense scrap in the domestic market was priced at INR 192,000 per tonne, indicating a marginal uptick of 3.2 per cent from the preceding week's INR 186,000 per tonne, ex-Delhi. However, certain scrap suppliers are quoting tense scrap at a premium rate of INR 3,000-4,000 per tonne in the Delhi NCR market.

Aluminium scrap prices are anticipated to continue their gradual ascent in the short term due to constrained supply in select grades, exacerbated by ongoing geopolitical tensions. Additionally, potential fluctuations in aluminium LME prices could further influence the market dynamics.

sourced from SteelMint under the content exchange agreement