India’s imported aluminium scrap prices show volatile trend W-o-W owing to fluctuations in future exchanges

India's imported aluminium scrap prices have shown mixed sentiments in line with movements in futures exchanges, which had w-o-w divergences but primarily exhibited a negative trend. The current state of the aluminium market is characterised by a diverse environment driven by various significant elements.

To begin with, sellers in the United States have already obtained confirmed reservations for future transactions. Additionally, the current market situation is experiencing temporary stability, characterised by minimal short-term swings. However, there is cause for hope as projections point to increasing US purchasing activity in the short term.

The data shows a notable increase in aluminium trade between the Middle East and India compared to deals involving the UK and the US. India's Zorba grade aluminium scrap market's existing situation offers difficulties for dealers and purchasers. Sellers' prices vary, resulting in a need for more price stability in the market. According to trade experts, this variation might make it difficult for purchasers to determine fair value.

Furthermore, buyer concern has increased because of the unpredictability of LME (London Metal Exchange) prices. Notably, alloy producers in the northern region are currently functioning at 50 per cent to 60 per cent capacity. This predicament has caused purchasers in the market to be cautious.

India's aluminium scrap market stayed constant compared to the previous day's close. Tense scrap prices were INR 155,000-156,000 per tonne exy-Delhi, while utensil scrap prices were INR 173,000-17,4000 per tonne (without GST). Market participants reported that despite moderate material availability, local demand is slow. Furthermore, the Chinese market is closed due to the mid-autumn festival holiday, so a complete picture of prices will emerge only when the market resumes regular activity.

Received under the content exchange agreement with SteelMint