India’s imported aluminium scrap prices grow W-o-W, buoyed by increased buying activity in Europe

This week, imported aluminium scrap prices in India have seen a modest increase, buoyed by a slight uptick in LME aluminium prices and increased purchasing activity in Europe ahead of the summer recess. Three-month LME aluminium prices reached $2,526 per tonne, marking a marginal week-on-week rise of 0.5 per cent. Concurrently, LME warehouse stocks declined by 3 per cent W-o-W to 994,175 tonnes.

According to BigMint's latest report, tension scrap originating from the Middle East, notably the UAE, saw a price hike of $50 per tonne, settling at $1,830 per tonne. Additionally, Zorba 95/5 sourced from the UK rose by $5 per tonne to settle at $2,060 per tonne CFR for the west coast of India.

Market trends

Due to the upcoming European holidays, material availability for specific grades is expected to tighten. Buyers are actively pursuing imported scrap before the European market enters holiday mode, anticipating potential price increases once the holidays begin.

Meanwhile, certain alloy manufacturers assert they have ample scrap inventories to fulfil demand for the next one to two months. These inventories predominantly comprise scrap from delayed consignments purchased at elevated prices between January and March. Manufacturers are cautious about lowering their offers for ADC12 alloy, as reducing ingot prices would adversely affect their profit margins.

Prices for US taint tabor HRB

The prices for US taint tabor HRB (2-3 per cent) remain steady in the range of $2,030 to $2,040 per tonne. However, bids have slightly decreased. BigMint reports that the price for US taint tabor HRB (2-3 per cent) is $2,000 per tonne CFR Mundra. According to market participants, There is a slight shortage of this material.

The price for US tense (6-7 per cent) was recorded at $1,850 per tonne CFR Mundra, with suppliers offering around $1,900 per tonne. Meanwhile, buyers' bids remained lower by $50 to $60 per tonne, indicating a market disparity between bid and offer prices.

Due to price volatility, medium and small traders continue to face challenges in procuring scrap. Many are opting to adopt a cautious approach, waiting for market conditions to stabilize before making significant moves.

Scrap market domestic

In the domestic market, prices for tense scrap have remained stable in both Delhi and Chennai. BigMint's assessment shows domestic tense scrap prices are at INR 181,000 per tonne ex-Delhi NCR and INR 182,000 per tonne ex-Chennai.

On June 29, India's Ministry of Commerce and Industry concluded an anti-dumping investigation concerning anodized aluminium frames used for solar panels/modules from China. The investigation has resulted in the imposition of duties ranging from $433 per tonne to $577 per tonne on imports falling under customs classifications 76109010, 76109030, and 76169990.

Outlook

In the near term, imported scrap prices will remain stable within their current range. Global uncertainty persists regarding LME aluminium prices, exacerbated by increased Chinese production, especially with the imminent restart of capacity in Yunnan. However, challenges persist as alumina supply struggles to keep pace with smelter demand.

                     Received under the content exchange agreement with SteelMint