Offers for imported aluminium scrap grades like Tense, Taint/Tabor, Zorba 95/2, and Zorba 99/3 in Asia rose despite a $48/mt drop in the three-month LME aluminium contract on improved demand for auto alloys in seaborne markets.
The three-month aluminium contract dropped by $48/mt to settle at $2,462.5/mt on July 22 from $2,510.5/mt on July 15. In the preceding week, the three-month aluminium contract gained $60.5/mt from $2,450/mt on July 8.
ADC 12 trades to Japan and China showed signs of recovery with improvement in bidding prices from both countries. Secondary manufacturers believe shipments in August could gain momentum compared to July.
The weekly Davis Index for Zorba 95/2 settled at $1,655/mt cfr India port, up by $55/mt from the prior week, while for Zorba 99/3, it settled at $1,700/mt cif China port, up by $177/mt. Exporters reported weak trades with China due to the stringent checks at Chinese ports. Participants shared that few Chinese buyers are paying more on a cfr China port basis for cleaner material.
The weekly Davis Index for Talk fell by $61/mt to settle at $4,704/mt cfr India port. Due to an extended lockdown in Malaysia, participants exporting Talk from the Southeast Asian country are out of action. A lack of offers elevated asking prices but buyers are bidding at 48-49pc of the three-month LME copper contract with offers at 51.5pc. Trading was thin.
The weekly Indexes for 6063 extrusions settled at $2,120/mt cfr India port, down by $65/mt, while for A356 wheels, the index settled unchanged at $2,185mt cfr India from port prior week. Participants heard trades for extrusion 95/5 trades at $1,980-2,000/mt cfr India prior week. The buyers lowered bids with a wide price variation in prices depending on the attachments in the material.
The weekly Index for Taint/Tabor rose by $14/mt to settle at $1,770/mt cfr India port, and the index for Tense settled $1,730/mt cfr India port, up by $1/mt. Participants reported that the demand for Taint/Tabor and Tense is rising driven by a revival in export demand for August shipments.
ADC 12 trades
The weekly Davis Index for ADC 12 cfr China settled at $2,292mt cfr China port, up by $11/mt from a week ago.
The weekly Index for ADC 12 cfr Japan settled at $2,317/mt, up by $4/mt. Manufacturers reported improvement in the ADC 12 bids at $2,300/mt cfr China and $2,325/mt cfr Japan port in few cases.