Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

A surge in silicon prices led to an increase in domestic secondary aluminium alloy prices in India. 


The ADC 12 del Delhi consumer surged to Rs180,000/mt on Aug 30 from Rs120,500/mt in the prior year, an increase of 49.37pc as raw material prices, especially the price of silicon remained elevated. 


Indian manufacturers importing silicon grades 553, 441 reported current rates at $3,100-3,200/mt cfr India port, from $1,500-1,600/mt in Sept 2020. 


Freight prices on the China-India route have increased four-fold in the last four months making silicon imports extremely expensive, silicon importers said. If the situation persists domestic alloy prices could further increase in the near term, alloy makers opined. 


Secondary manufacturers shared, silicon grades 553, 441 were available at Rs260,000-280,000/mt ($3,547.97-3,830.87/mt) with additional GST charges in the local markets. 


Silicon is used as an alloying agent by secondary alloy manufacturers to increase the strength of aluminium. 


Electricity and emission curbs in China have led to restricted silicon production leading to escalated silicon export costs, market participants shared. 


The 2202 grade was available at $3,600/m up from $1,900/mt cif Nava Sheva in Feb 2020 which is used to manufacture A365.2 aluminium alloy. 


Importers believed that shipments for 2202 grade would remain unavailable till October and were trying to source the product from Malaysia or procure Russia-origin products from Europe with limited success. 


In February 2020, secondary aluminium manufacturers from India faced a scarcity of silicon. Manufacturers had reported that 441 and 553 grades of silicon were sold at Rs158,000/mt and Rs154,000/mt. Chinese traders offered 2202 grade silicon at $1,900/mt cif Nava Sheva on Wednesday, up from $1,550/mt cif Nava Sheva on Jan 17. 


Importers who booked containers for 2202 grades from China remained unsure about timely delivery. Participants said supply was limited for the grades in the domestic market and anticipate a scarcity if import prices soar. 


($1= Rs73.28)

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