Raw material shortage raises India's ADC12 aluminium ingot price W-o-W

The spot prices for Aluminium ADC12 alloy ingot, equivalent to automobile grade, saw a modest rise of INR 2,000 per tonne to reach INR 213,000 per tonne week-on-week (w-o-w) exw Delhi, excluding GST. In the current market, firm offers are noted in Delhi and Chennai at INR 182,000-183,000 per tonne.

However, the workable levels in Chennai hover around INR 181,000 per tonne. Notably, the spot price for ADC12 in Chennai has climbed to INR 215,000-216,000 per tonne exw on immediate terms, excluding GST, marking an increase of up to INR 3,000 per tonne compared to the previous week. Original Equipment Manufacturer (OEM) prices for ADC12 are currently under spot prices due to long-term contracts.

"At present, we're exclusively fulfilling ADC12 orders through bulk contracts at fixed prices and have adjusted production up to certain level. A few specific buyers are being offered aluminum clean tense material at premium of INR 184-185/kg, ex-Delhi," said an alloy producer.

Pricing trend for imported tense scrap

Yesterday, imported tense scrap prices from the Middle East, notably from the UAE, saw an increase of $30 per tonne to reach $1,880 per tonne. Similarly, Tense (6-7 per cent) from the US was reported at $1,930 per tonne, up by $30 per tonne. The price for Zorba 95-5 from the UK was noted at $2,060 per tonne CFR Nhava Sheva. On the other hand, three-month futures for aluminium are currently trading at $2,289/t, showing a weekly increase of $90 per tonne.

Other prices

Silicon 553 from China is priced at $1,850-1,860 per tonne to Chennai, showing a notable decrease attributed to market demand. Meanwhile, offers for Silicon 441 stand at $2,010-2,030 per tonne to Chennai. In Delhi, the price for Silicon 853 is INR 180,000 per tonne, while for the 553 grade, it is INR 185,000 per tonne. Both prices come with 30-40 credit payment terms.

Aluminium taint tabor HRB 2-3 per cent, South America-origin, was sold to Dadri India at $1,900 per tonne for 50 tonnes. USA Zorba 95-5 recently traded at $2,030 per tonne CIF Nhava Sheva for 45 tonnes. A forecast suggests that prices for major automobile company stocks could increase for May 2024 contracts, potentially bolstering prices in the short term.

Received under the content exchange agreement with SteelMint