India’s weekly imported aluminium scrap prices fell by $50-100/mt on a $58/mt drop in the official three-month LME aluminium contract. Transactions were subdued in the market.
The Davis Index declined by 5pc for both, imported Tense and Taint/Tabor. The weekly index for Tense settled at $1,050/mt cfr India port, Friday down by $54/mt and the index for Taint/Tabor settled at $1,062/mt cfr India port, Friday, down by $51/mt from a week ago.
Both scrap grades were in high demand since December till mid-January on strong demand for aluminium ingots from China. The demand subsequently weakened after China reduced bookings amid increased import quotas which led to higher availability of scrap for the first quarter of 2020. A drop in sales and the fall in LME aluminium pressured Tense and Taint/Tabor prices.
The decline in LME aluminium also affected other grades and the index for 6063 extrusion aluminium scrap settled at $1,523/mt cfr India port, Friday down by $75/mt from a week ago, while the weekly index for Troma settled at $1,468/mt cfr India port, Friday down by $97/mt from a week ago.
Export prices of secondary aluminium alloys from South Asia to China dropped by $45/mt to settle at $1,570/mt cfr China port, Friday after bookings declined as China continued to be under the Coronavirus related lockdown. Chinese markets were expected to reopen on January 30 after the lunar new year holidays, which are now extended till Feb first week.
The official three-month LME aluminium contract settled at $1,736/mt Thursday, down by 3.2pc from $1,794/mt from a week ago.