India: Imported aluminium scrap prices rise w-o-w amid firm LME trend

• Prompt supply tightness reinforces bullish sentiment
  
  
• Limited import availability supports price resilience
  
  

India's imported aluminium scrap prices traded firm w-o-w despite continued volatility in the global scrap market and elevated London Metal Exchange (LME) aluminium prices.

According to BigMint's latest assessment for CFR Nhava Sheva deliveries, UK-origin zorba 95-5 scrap increased by $60/t w-o-w to $3,040/t from $2,980/t previously, supported by firmer imported scrap sentiment and tightening overseas supply conditions.

Meanwhile, US-origin tense 6-7% scrap increased by $20/t w-o-w to $2,810/t from $2,790/t last week, supported by steady buying interest and continued strength in the imported aluminium scrap market.

LME aluminium gains w-o-w

Three-month aluminium prices on the London Metal Exchange (LME) traded higher w-o-w, closing at $3,716/t on 2 June against $3,682/t on 26 May'26, up by $34/t.

LME aluminium prices remained firm w-o-w as escalating Middle East tensions and continued risks surrounding Strait of Hormuz shipping routes reinforced concerns over global aluminium supply disruptions.

Market sentiment was further supported by the Cash-3M premium rising to near 19-year highs, signalling acute tightness in prompt metal availability, while Guinea's proposed bauxite export restrictions and stricter mining controls in China strengthened concerns over raw material supply.

Meanwhile, LME aluminium inventories declined by 1,350 t w-o-w to 338,000 t from 339,350 t over the same period.

Market scenario

Imported aluminium scrap prices increased during the week, supported by a rise in LME aluminium prices and continued tightness in global scrap availability. Despite the upward price trend, market participants largely remained in a wait-and-watch mode, with many secondary aluminium producers adopting a cautious procurement approach amid rupee weakness, volatile market conditions, and uncertainty over the near-term price direction.

Import arrivals into India remained limited due to uncompetitive overseas offers, ongoing supply constraints, and elevated freight costs. At the same time, secondary alloy producers continued to face challenges from tight raw material availability and rising logistics expenses, further pressuring production economics. Globally, supply conditions remained constrained, while freight costs continued to be a key concern for import-dependent buyers.

Buying activity moderated compared with previous weeks, but scrap prices continued to remain firm as constrained supply provided strong support to the market. Demand from the ADC12 and secondary alloy sectors remained healthy, helping sustain elevated scrap values despite growing resistance from buyers at higher price levels. Market participants noted that any further increase in scrap prices could begin to impact alloy demand and put additional pressure on margins across the value chain.

On the domestic front, aluminium prices remained firm, supported by tight scrap availability across both northern and southern regions. Casting-grade tense scrap continued to face acute supply shortages, creating procurement challenges for secondary producers and preventing any significant correction in prices despite cautious buying sentiment. Overall, the market remained firmly supported by supply-side constraints, although buying activity was increasingly measured as participants assessed the sustainability of current price levels.

Chinese silicon prices

According to BigMint's latest assessment, China-origin silicon metal 553 prices increased marginally by $5/t w-o-w to $1,435/t on a CFR Mundra basis, compared with $1,430/t last week, supported by firm import offers and stable market sentiment.

Outlook

Imported aluminium scrap prices in India are expected to remain firm in the near term amid tightening global supply conditions, elevated LME aluminium prices and continued geopolitical risks surrounding key trade routes. However, cautious buying activity and resistance at higher price levels may limit sharp upside.