India: ADC12 aluminium OEM-grade alloy ingot prices rise m-o-m in Mar'25 amid higher scrap tags

Aluminium ADC12 alloyed ingot prices moved up m-o-m across both northern and southern India in March 2025, according to BigMint's benchmark assessment. This marks a six-month high, amid steadily rising scrap prices.

BigMint's monthly assessment for the OEM grade of ADC12 stood at INR 217,000 per tonne in Delhi, rising by INR 7,000 per tonne m-o-m, and INR 216,000 per tonne in Chennai, up by INR 6,000 per tonne m-o-m.

Tense-grade scrap prices rose by around INR 8,000/t m-o-m, driving an upward movement in ADC12 prices as well. The spread between scrap and semi-finished products narrowed to INR 32,000-33,000 per tonne, showing a decline compared to the previous month.

Meanwhile, three-month London Metal Exchange (LME) aluminium prices increased by USD 45-50 per tonne m-o-m to around USD 2,700 per tonne.

OEM-grade ADC12 prices continue uptrend from early Feb

According to sources, most companies in early February quoted INR 212,000-214,000 per tonne for OEM-grade ADC12, with this range becoming the most common for trades.

India's largest automaker maintained its ADC12 March 2025 settlement price at INR 214,000 per tonne. However, OEMs in northern and southern India eventually started quoting higher prices of INR 217,000-220,000 per tonne due to a shortage of raw materials in the market.

The scarcity of raw materials is linked to their increasing prices, which has made sourcing more difficult for ADC12 manufacturers.

A manufacturer stated, "Driven by supply challenges in the raw material segments, some ADC12 sellers offered OEM-grade material at up to INR 225,000 per tonne. Also, India is currently trying to directly import ADC12 from Malaysia and Thailand."

A seller noted, "India's largest automaker has internally revised its March 2025 ADC12 prices from INR 212,500 per tonne to INR 214,000 per tonne and is expected to set April 2025 prices in the coming week. With expectations of further price increases, many plants are now running at maximum capacity after a long time."

Export market

ADC12 offers were heard at USD 2,400-2,450 per tonne from India to Japan in early March.

Commenting on the European segment, a trader stated, "The European aluminium alloy market is going through a tough time. Demand from manufacturers still has not fully recovered since the COVID slowdown, and there is not enough scrap available, because countries such as India and Far East Asia are buying a considerable amount. On top of that, companies making primary aluminium are using more high-quality scrap to meet the car industry's need for eco-friendly production. This is making it even harder for alloy makers to get the materials they need."

China's silicon prices firm m-o-m

According to BigMint's assessment, prices of China's 553-grade silicon were firm m-o-m at USD 1,510-1,530 per tonne CFR Mundra.

Raw material prices rise

In February 2025, prices of the basic raw material for aluminium alloys, that is scrap, saw an increase m-o-m. BigMint's assessment for Tense scrap originating from the USA was at USD 1,870 per tonne  CFR Nhava Sheva, up slightly by USD 40 per tonne m-o-m. Meanwhile, Zorba 95/5 from the UK stood at USD 2,100 per tonne CFR west coast, India, a marginal increase of USD 20 per tonne m-o-m.

Currently, imported tense scrap originating from the USA was priced at USD 1,950 per tonne CFR Nhava Sheva, Meanwhile, Zorba 95/5 from the UK stood at USD 2,150 per tonne CFR west coast, India.

In the domestic market, Tense scrap prices moved up m-o-m in both Delhi and Chennai. According to BigMint's assessment, prices stood at INR 185,000-186,000 per tonne ex-Delhi and INR 185,000 per tonne ex-Chennai.

Outlook

The ADC12 alloy market is expected to remain strong in the near term, supported by rising raw material costs due to ongoing supply shortages and an expected price hike for April 2025 settlements by automakers. Overseas demand is also anticipated to increase, which could further boost the market. Additionally, the price gap between scrap and semi-finished products narrowed last month, which may lead to price adjustments in the coming month.

Note: This article has been issued by BigMint and has been published by AL Circle in its original form without any modifications or edits to the information.