Imported aluminium scrap prices in India remained rangebound with slight downfall in prices w-o-w. Although buying interest was weak, bid-offer disparity was seen despite rangebound levels in LME aluminium prices.
BigMint’s benchmark assessment for tense scrap originating from the UAE was at $1,770/t, slightly lower w-o-w, and for zorba 95/5 from the UK at $2,070/t, both CFR west coast, India.
At the time of reporting, three-month aluminium futures on the LME remained firm at $2,645/t from the previous week’s $2,645/t. Meanwhile, stocks at LME registered warehouses stood at 757,850 t, falling by 1% w-o-w from 746,200 t.
Market insights
A trader noted, “Prices remain largely stable, mainly due to the festive season, though overall demand is still subdued. Only a few large alloy manufacturers are purchasing imported raw materials to meet their pre-booked orders. The main concern continues to be the weaker-than-usual demand across the industry, which may limit any significant price movements.”
AAI flags dumping issue
The aluminium industry has called on the government to raise the basic customs duty on primary aluminium and aluminium scrap to prevent market dumping in India, which is discouraging new investments in the sector. According to an industry body, India possesses all the elements necessary to become a global aluminium hub.
In its pre-budget proposal to the Department for Promotion of Industry and Internal Trade (DPIIT), the Aluminium Association of India (AAI), representing the nation’s leading aluminium producers, urged the government to raise import duties on primary and downstream products from 7.5% to 10% to promote self-sufficiency and attract investments. Additionally, the AAI requested an increase in the import duty on aluminium scrap from 2.5% to 7.5%, aligning it with other aluminium products to reduce the influx of cheap imports.
China’s silicon market
According to BigMint’s assessment, prices of China’s silicon 553 remained rangebound w-o-w at $1,730/t CFR Mundra. Meanwhile, offers from the suppliers’ side were at $1,740-1,750/t. However, bids were heard at the lower end, at $1,710-1,720/t.
Domestic scrap prices firm
In the domestic market, tense scrap prices remained firm w-o-w in both Delhi and Chennai. According to BigMint’s assessment, domestic tense scrap prices stood at INR 172,000/t ex-Delhi NCR and INR 173,000/t ex-Chennai.
Despite a slight increase in offers for domestic casting scrap in both the northern and southern regions, workable prices remained at INR 170,000-172,000/t in both Delhi and Chennai.
Outlook
In the short term, prices of imported scrap are expected to remain stable ahead of Diwali, largely due to the holiday season slowing down market activity. However, prices may trend upward afterwards driven by rising LME levels amid an ongoing alumina shortage and increased demand post holidays.
Article Credit: Bigmint
