India’s imported aluminium scrap prices witness downward trend following reduced trade activities

The Indian aluminium scrap market is now declining, owing to less trading activity and despite a sluggish buildup of scrap, particularly in the western area due to the winter season and a w-o-w fall in the aluminium LME level. As per reports, the current prices for tense scrap of Middle East origin closed at $1,540 per tonne, reflecting a week-on-week reduction of $20 per tonne.

It is estimated that the price of Zorba 95-5, UK-origin, was $1,900-1,910 per tonne, an increase of $90 per tonne. However, although some purchasers have boosted their offers for Zorba-grade scrap, their bids still need to catch up to what sellers charge in the market, with some sellers giving high rates around $1,930-1,950 per tonne due to superior bids from the Far East area.

As per AL Circle's report 'World Recycled Aluminium Market Analysis - Industry Forecast to 2030,' the global aluminium recycling market forecasts substantial growth between 2022 and 2030. As of 2023, the market is displaying a steady growth rate, and with the increasing implementation of strategies by key industry players, it is expected to see a notable expansion over the projected period. To know more on how the scrap aluminium market will be performing in the years ahead, check out AL Circle’s 'World Recycled Aluminium Market Analysis - Industry Forecast to 2030,' report.

Market analysts have seen a substantial discrepancy in the pricing of scrap materials, with changes ranging from $30 to $40 per metric tonne on a week-over-week basis for all categories of aluminium scrap. Conversely, scrap originating from the United States is now valued at 53 per cent of the rates set by the London Metal Exchange (LME), with slight fluctuations in bids ranging from 0.4 per cent to 0.5 per cent.

Recent discussions have occurred, but their confirmation is pending publication. Presently, the prices of copper on the London Metal Exchange (LME) are about $8,382 per metric tonne, seeing a decline of $70 per metric tonne week-over-week. Market players expect near-term prices to be range-bound or a modest upward correction as local scrap supply is improving. However, import prices are less likely to narrow owing to delayed procurement at the majority of recycler's locations.

Simultaneously, the three-month futures for aluminium were now at $2,135 per metric tonne at the time of publishing, indicating a weekly decline of about $45-50 per metric tonne. Moreover, the stockpiles in the LME warehouses reached 452,375 metric tonnes at yesterday's trading session, showing a little decrease compared to the previous week.

Market players have remarked that the present market dynamics make it difficult for other areas to obtain commodities due to high European and UK currency exchange rates. According to a trustworthy source, mills in southern India have seen a reduction in output since the storm hit. In addition, owing to severe rain, a few furnaces were unable to run.

Consequently, everyone is on hold for now, intending to restart operations next week. Due to the impending holidays and winter in China, material loading has been disrupted, leading suppliers to boost prices for silicon 553. China's origin silicon 553 trades at roughly $1,955 per tonne, CIF western coast, India, up $20 per tonne yearly. India's domestic aluminium scrap market prices have fallen somewhat since last week. SteelMint estimated tension scrap prices at INR 153,000 per tonne, while utensil scrap prices were INR 166,000 per tonne exy-Delhi (without GST).

Received under the content exchange agreement with SteelMint