India’s aluminium scrap import bookings came to a halt this week after the government announced a nationwide complete lockdown, leaving market participants confused about the current status of shipments.
Buyers of aluminium scrap have multiple shipments stuck at ports and inland container depots since road transportation is prohibited under the lockdown, to prevent further spread of COVID-19. Exporters are concerned about their en route shipments making it to the buyers’ sites in India. They are unsure of shipping containers scheduled to be dispatched in the coming few weeks.
The Davis Index for 6063 extrusion scrap settled at $1,433/mt cfr India port, Friday, down by $15/mt from a week ago and the index for Troma settled at $1,400/mt cfr India port, also down by $15/mt. The weekly index for Taint/Tabor settled at $961/mt cfr India port, down from $976/mt and the index for Tense settled at $966/mt cfr India port, down from $980/mt.
China resumed bookings of aluminium scrap and sales of secondary aluminium alloy. The weekly index for ADC12 settled at $1,400/mt fob China, down by 8pc, on significant drop in demand from Japan as the country’s auto sector halved its production. A fall in LME aluminium price also affected prices.
The official three-month LME aluminium contract settled at $1,539.5/mt, Thursday, down by 4.2pc from $1,607/mt from a week ago, lowest since May 2016.