India’s imported aluminium scrap witnesses W-on-W price dip, reflecting cautious metal futures

The Indian imported aluminium scrap market encountered significant challenges this week, with scrap prices experiencing a sharp decline of up to 5.8 per cent week-on-week. This reduction was primarily attributed to a scarcity of favourable offers aligning with lower futures, resulting in decreased buying inquiries and subsequently hampering transaction volumes, especially in specific regions.

Presently, the aluminium scrap market is grappling with subdued demand, a direct consequence of lacklustre activity observed within the metal futures exchanges. This has triggered a prevailing bearish sentiment across the industry.

The subdued state of the metal futures exchange has adversely impacted investor confidence, exerting a noticeable effect on both trading volumes and price trends. As a result, aluminium scrap prices are characterized by diminished consumption and subdued trading activity.

In the northern region of India, buyers approached the market with caution due to the downward adjustment of metal futures contracts, leading to their bids being approximately $50-70 per tonne lower. On the other hand, importers in the western part of India displayed more positive attitudes, showing keen interest in potential deals, as reported by a trusted source.

Simultaneously, prices of US-origin aluminium talk (Uncontaminated aluminium and copper radiators, along with aluminium fins on copper tubing, devoid of any brass tubing, iron, or extraneous impurities) plummeted by $225 per tonne week-on-week to reach $4,440 CIF for West Coast India.

Other grades of scrap also experienced declines in the range of $20-70 per tonne week-on-week. Conversely, prices for UK-origin wheels witnessed a $70 per metric ton reduction, while Middle East-origin taint tabor dropped by $35 per tonne week-on-week.

The global aluminium market has been undergoing fluctuation, characterized by a bid-offer variance of approximately $50-60 per tonne. Shifting to the domestic scrap market, aluminium scrap prices remained steady in comparison to the previous trading day.

Aluminium tense (Encompasses various aluminium castings, including those from airplanes and automobiles, devoid of ingots, non-metallic components, dirt, iron, and brass) prices stood at INR 156,000 per tonne, and utensil prices held at INR 170,000 per tonne, both figures being applicable to the ex-Delhi region and exclusive of GST.

Additional insights from a trader indicate that there is an ample supply of scrap within the domestic market, particularly in the northern region, encompassing various scrap grades.

Furthermore, China's silicon prices experienced a marginal decline of $10 per tonne week-on-week, now resting at $1,820 per tonne CIF for West Coast India.

Recent market transactions:

The sale of approximately 50 tonnes of Israel-origin aluminium taint tabor at a CIF price of $1,710.

Around 60 metric tons of US-origin aluminium talk sold at $4,500 per tonne CIF for West Coast India.

50 tonnes of US-origin aluminium tense were sold at a CIF price of $1,720 for West Coast India.

Approximately 50 tonnes of China-origin silicon 553 were acquired at a CIF price of $1,815 for West Coast India.

Notably, around 60 tonnes of US-origin aluminium taint tabor (2-3 per cent) were sold at CIF prices ranging from $1,690 to $1,710 for West Coast India.

Looking ahead:

The outlook for the aluminium scrap market remains uncertain, heavily influenced by the actions of major futures exchanges such as the London Metal Exchange (LME) and the Shanghai Futures Exchange (SHFE), alongside the interplay of supply-demand dynamics, economic conditions, and trade-related parameters. As a result, diligent monitoring of these exchanges will prove indispensable for stakeholders navigating the dynamic and volatile landscape of the aluminium scrap market.

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Received under the content exchange agreement with SteelMint