India: Aluminium scrap import prices climb up w-o-w; UAE port activity hit by US-Iran conflict

• Freight surge and war risks slow scrap buying
  
  
• Scrap shortages push Chennai tense prices higher
  
  

India's imported aluminium scrap prices recorded a sharp w-o-w rise as of 10 March 2026, supported by gains in prices on the London Metal Exchange and ongoing geopolitical tensions, while domestic Tense scrap prices also remained firm amid tight local supply conditions.

As per BigMint assessment for CFR Nhava Sheva deliveries, US-origin Taint Tabor HRB 2-3% scrap increased by $130/t w-o-w to $2,580/t, while UK-origin Wheel scrap rose by $140/t w-o-w to $3,190/t, reflecting continued firmness in imported aluminium scrap prices.

LME aluminium sharp gains w-o-w

Three-month aluminium closing prices on the London Metal Exchange increased by 4.8% w-o-w to $3,387/t on 9 March 2026, up from $3,233/t on 2 March 2026. Meanwhile, LME aluminium inventories declined by 1.9% or 8,925 t over the same period, easing from 463,550 t to 454,625 t.

Aluminium prices on the London Metal Exchange rallied sharply last week, averaging around $3,306/t, up $129/t or 4% w-o-w, and briefly touching a near four-year high above $3,400/t amid escalating geopolitical tensions and tightening global supply. The surge followed the shutdown of the Qatalum smelter in Qatar after disruptions in natural gas supply, while Aluminium Bahrain also declared force majeure due to shipping issues in the Strait of Hormuz. With the Middle East accounting for nearly 8% of global aluminium output, supply concerns, low global inventories, and limited production flexibility outside China have heightened market volatility and pushed prices to multi-year highs.

Market insights

India's imported aluminium scrap prices recorded a sharp w-o-w increase, supported by stronger prices on the London Metal Exchange and heightened geopolitical tensions that have tightened supply sentiment.

Market participants indicated that activity in the aluminium scrap market slowed as buyers adopted a cautious, wait-and-watch approach amid elevated prices and geopolitical uncertainty. Traders noted that bids for US-origin Taint Tabor (TT) scrap remained below prevailing offer levels, limiting deal closures. Market activity was largely concentrated in automotive alloy scrap grades such as Tense, supported by steady demand from the auto sector, while trading in other scrap grades remains relatively subdued.

Participants also highlighted several logistical challenges affecting procurement decisions. High freight costs, combined with War Risk Surcharges at destination ports due to the ongoing Middle East conflict, have significantly raised landed costs and made buyers reluctant to commit to fresh import bookings.

In addition, no fresh offers are currently being received from the Middle East, resulting in a temporary halt in related price assessments. Market sources also noted that sea exports from the UAE are currently not possible, further disrupting regional scrap flows. With Jebel Ali and the wider Middle East serving as key transshipment hubs, and some operations yet to fully resume, cargo movement to India may face delays if the situation persists.

Some secondary producers reported operating at around 50% of capacity, reflecting cautious procurement strategies and uncertainty over raw material availability. While buyers continue to receive offers for certain grades such as Zorba, many are holding back sales in anticipation of potential price movements.

On the domestic front, supply tightness has intensified despite elevated price levels. Scrap availability has declined over the past week, pushing Tense scrap prices in Chennai to around INR 237,000-240,000/t, maintaining a premium over other regions. Meanwhile, casting scrap and Tense grades in both Delhi and Chennai have increased by roughly INR 9,000-10,000/t amid ongoing shortages. Market participants cautioned that any further transit delays could deepen supply constraints in the near term.

Overall, market sentiment remains cautious, with most participants pausing new import transactions and closely monitoring geopolitical developments, freight costs, and supply chain disruptions before making further purchasing decisions.

Chinese silicon prices

According to BigMint, China-origin silicon metal 553 prices increased by $35/t w-o-w to $1,375/t on a CFR Nhava Sheva basis.

Outlook

In the near term, Indias aluminium scrap market is expected to remain firm but volatile, supported by elevated prices on the London Metal Exchange, tight domestic scrap availability, and ongoing geopolitical risks affecting Middle East trade routes. However, cautious buying, high freight costs, and logistical disruptions -- particularly from key hubs such as Jebel Ali in the UAE -- may limit trading activity. Market participants are likely to adopt a wait-and-watch approach in the short term, with price direction largely dependent on developments in the Middle East conflict, freight conditions, and the pace of supply normalisation.