China’s weekly imported prices of aluminium scrap and secondary aluminium alloy dropped by 2-7pc on low demand and oversupply of primary aluminium in May. The Davis Index for Zorba 99/3 Friday settled at $957/mt cfr China port, down by $68/mt from the prior week.
The weekly index for ADC12 settled at $1,340/mt cfr China port, down by $52/mt from a week ago after demand from the country dropped on the back of stockpiling. China increased imports of primary and secondary aluminium in the last two months when the metal’s LME price slumped and ranged between $1,400-1,500/mt. The artificial demand created by China boosted LME aluminium prices, which rose to $1,600/mt in the first week of June. Market participants outside China, however, did not benefit from the boost in prices as domestic demand remained low, making it unaffordable for mills to purchase scrap at higher levels.
The weekly index for 6063 aluminium extrusion scrap settled at $1,300/mt cfr India port, up by $15/mt, and the index for Troma settled at $1,295/mt cfr India port, up by $7/mt. Indian importers of aluminium scrap are still trying to clear their containers from ports, with most having raw material stocked up already, said a seller who expects bookings to perk up by the end of June, especially on the back of return of automotive demand.
The official three-month LME aluminium contract settled at $1,605/mt, Thursday, up by $45/mt or 3pc from a week ago, recovering to mid-March prices.