Spot prices of aluminium ADC12 alloy ingots (non-OEM) in Delhi NCR and Chennai fell w-o-w, as per BigMint's latest assessment. In the Delhi-NCR region, ADC12 spot prices were assessed at INR 209,000 per tonne ex-Delhi, aligning with domestic tense scrap prices, which settled at INR 175,000 per tonne ex-Delhi.
"We have stocked material beforehand and it is not required at least for a month. So, currently need-based purchasing is going on for small quantities". A source said, "Prices will begin to trend upward next month as trading activities, currently slow due to the rains in most regions of India, return to normal. In the meantime, traders are planning to stockpile materials at lower prices,” said a buyer source.
Likewise, ADC12 prices in Chennai were reported at INR 211,000 per tonne on an immediate payment basis, excluding GST. At the same time, casting scrap prices were at INR 176,000 per tonne ex-Chennai. The current spread between tense and ADC12 spot levels is at INR 33,000-34,000 per tonne, widening by 3,000-4,000 per tonne from previous levels of 29,000-30,000 per tonne.
A credible seller source said, "We are currently in a restocking phase. This strategy aims to position us to release the inventory at a higher price and achieve an optimal profit margin once the monsoon season comes to an end."
LME aluminium prices
Three-month LME aluminium prices fell $70 per tonne to $2,224 per tonne yesterday compared with the previous week's $2,300 per tonne. Notably, aluminium prices have reached an almost four-month low.
According to BigMint's assessment, Tense scrap from the Middle East, particularly the UAE, decreased by $60 per tonne, settling at $1,730 per tonne. Zorba 95/5 from the UK also decreased by $25 per tonne to $1,975 per tonne CFR West Coast, India.
China's silicon market
China's silicon 553 prices dropped $50/t, reaching $1,790/t CFR Mundra amid easing freight rates. However, buying interest has declined because major aluminium alloy manufacturers have sufficient silicon supplies. The freight rate from China to Mundra was also heard at $2,540-$2,560 per 20-foot container.
Domestic scrap market
In the domestic market, tense scrap prices have decreased w-o-w by INR 2,000 per tonne in both Delhi and Chennai. According to BigMint's assessment, domestic tense scrap prices are now at INR 175,000 per tonne ex-Delhi NCR and INR 175,500 per tonne ex-Chennai. This decline aligns with the falling LME aluminium prices and sluggish market trends.
Outlook
In the near term, aluminium scrap and ADC12 prices may remain rangebound due to uncertainties in LME aluminium pricing and the seasonal impact. Buying activity is also expected to remain slow.
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