India’s weekly imported aluminium scrap prices rose as Chinese scrap buyers return to the market following approval of new import quotas. The Davis Index for A356 wheels (Troma) settled at $1,355/mt cfr India port, Friday, up by $23/mt from a week ago, while the index for 6063 extrusion scrap settled at $1,450/mt cfr India port, up by $17/mt from a week ago, driven by the demand from alloy and extrusion makers. Many industrial units catering to auto sector resumed operations last week. Indian manufacturers said demand from the automotive and infrastructure sector has started to return.
The official three-month LME aluminium contract settled at $1,719/mt on Thursday, up by $21.5/mt or 1.2pc from a week ago.
As an exception, the only grade that declined during the week was T/T. The weekly Davis Index for Taint/Tabor settled at $1,087/mt, down by $31/mt from the prior week while the index for Tense settled at $1,032/mt, up by $32/mt from the prior week, on-demand from alloy manufacturers that started production in the last few days.
Sale of secondary aluminium ingots to China have dropped prompting manufacturers to wait for the domestic demand to return as the auto sector has showed signs of recovery. Demand for two-wheeler and commercial vehicle segment is expected to improve in the domestic market, especially in the rural areas.
The weekly index for ADC 12 settled at $1,472/mt, up by $27/mt from a week ago as few Indian exporters renegotiated their offers.