Imported aluminium scrap prices in India record significant fluctuations W-o-W

Imported aluminium scrap prices in India have experienced significant volatility, where several grades witnessed a growth of upto $40 per tonne and a decline of up to $10 per tonne for some grades when compared on a W-o-W basis. These fluctuations can be related to the patterns seen on the London Metal Exchange's (LME) three-month futures market, where aluminium prices remained contracted by $40-50 per tonne W-o-W in the previous trading session, at US$2,230-$2,240 per tonne.

The LME, however, remained closed on May 29 due to the summer bank holiday. Aluminium stockpiles on the LME increased by 24,580 tonnes Y-o-Y to 579,775 tonnes. Compared to other grades, such as UK Zorba 95/5 or 94/4, and the domestic tense pricing in the northern regions, INR 163,000 per tonne, the price of tense scrap from the US is affordable.

Aluminium from the United States trades for $4,500 per tonne, up $70 per tonne yearly. The price of metallic silicon from China is falling due to lower demand for aluminium alloys and silicon due to the global economic slump. Local manufacturers are functioning at full capacity, resulting in a supply excess.

Current prices have decreased by $400-600 per tonne since March, hitting their lowest point in two years. Export prices for various grades have also reduced, with "2202" priced at $2,300-2,400 per tonne, "3303" marketed at $2,150-2,250 per tonne, "441" priced at $2,000-2,100 per tonne, and "553" priced at $1,950-2,050 per tonne. These prices represent a considerable decrease from March.

It has been reported that 100 t of Meatball grade was sold for $1,640/t from Germany to India at the end of last week. In another transaction, 40 t of Chinese silicon grade 553 was recently traded for $1,975-1,980/t CIF Chennai. The SHFE aluminium futures price was RMB 18,025/t today, up RMB 125/t from the previous day.