Imported aluminium scrap prices in India were flat to down this week amid subdued demand, while the LME aluminium futures contract increased by $2.5/mt.
The Davis Index for 6063 aluminium extrusion scrap settled at $1,300/mt cfr India port, unchanged from a week ago. The weekly index for Troma settled at $1,290/mt cfr India port, down by $5/mt.
Demand for aluminium scrap in India remained weak as lockdown measures were tightened in certain areas. Scrap trades have remained hit for the past few months due to low demand in the auto sector.
ADC12 alloy makers also refrained from scrap purchases as sales to China fell amid unviable bids in the range of $1330-1,360/mt. Prices below $1,400/mt will hurt their pockets, shares a trader. Though the weekly index for ADC12 cfr China port settled at $1,401/mt, up by $61/mt, Chinese buyers were unwilling to pay higher prices to Indian sellers.
China’s imports of aluminium scrap have come to a near halt as buyers have exhausted their import quotas. Export prices from China thus shot up on Friday, due to tight scrap supply and resulting increased prices. The weekly index for ADC12 port rose by $95/mt and settled at $1,465/mt fob China.
The official three-month LME aluminium contract settled at $1,608/mt, Thursday, up from $1,605.5/mt from a week ago.