India’s weekly imported aluminium scrap prices rose by 2-5pc on a 2.4pc increase in the LME aluminium futures contract, however, there were only few buyers in the market on low downstream demand, especially from the automotive industry.
The Davis Index for 6063 aluminium extrusion scrap settled at $1,285/mt cfr India port, Friday, up by $17/mt from a week ago. The weekly index for Troma settled at $1,288/mt cfr India port, up by $28/mt. Offers from the UK and South Africa were $30-40/mt higher than those from the US. Indian buyers, however, have not actively returned to the markets amid a lack of downstream demand.
The weekly index for secondary aluminium alloy ADC12 dropped by $10/mt to settle at $1,400/mt fob China port, on the back of a drop in demand from Japan’s automakers. The weekly index for ADC12 cfr China port settled at $1,392/mt, Friday, down by $16/mt. China preferred to purchase the alloy from South Korea. Imports from South Korea do not attract any duty, while those from India have a 4.6pc duty. A shorter delivery period and better quality of ADC12 ingots also tipped bookings in favour of South Korea. Indian ADC12 manufacturers felt the heat as Chinese buyers refused to increase bids above $1,380-1,400/mt, while some asked for $1,320-1,350/mt.
The official three-month LME aluminium contract settled at $1,560/mt, Thursday, up by $36/mt from a week ago.