Slow trading pushes down aluminium alloy ingot (ADC12) price by INR 1000/t in India

Domestic pricing of aluminium alloy ingot ADC12 in India fell by INR 1,000 per tonne W-o-W to INR 200,000 per tonne. Although the present demand and supply situation seems modest, selling pressure in the local markets influences prices. Factors like higher import costs and limited transactions are causing prices to increase.

It should also be highlighted that the manufacturing capacity still needs to be more utilized. Prices of imported UK-origin aluminium scrap (Zorba 95-5) remained high despite a significant drop of more than $100 per tonne on the London Metal Exchange.

"Prices of 553 grade can increase by up to INR 209,000/t – 210,000/t with payment terms of approximately 45-50 days," said a trade source.

"Keeping in mind current demand, silicon can be obtained at INR 206,000-207,000/t levels," a source from SteelMint added.

According to one industry player, the price announcement for Maruti's ADC12 for April is projected to be reasonably constant compared to March pricing. The possibility of a price hike looks remote. Also, silicon 553-grade rates are now around INR 207,000 per tonne - 208,000 per tonne with credit payment conditions, ex Delhi, excluding GST.

Domestic aluminium scrap prices in India were rangebound Thursday. Tense prices were INR 163,000 per tonne ($1,991 per tonne), while utensil prices were INR 172,000 per tonne ($2,101 per tonne) ex-Delhi and without GST. However, trade was light, with buyers waiting for major players to announce the price of P1020 ingots. On the London Metal Exchange (LME), three-month aluminium futures and spot prices hovered around $2,320-2,380 per tonne W-o-W.

“The price for ADC12 is hovering at around INR 205,000/t for credit payments, and cash would be 200,000/t for an approved original equipment manufacturer (OEM). Prices for A356 grade ingot with 0.15 Fe are currently at INR 235,000/t”, sources said.

                                 Received under the content exchange agreement with SteelMint