India: Imported aluminium scrap prices rise w-o-w; domestic scrap supply tightness persists

• Imported buying remains need-based
  
  
• Domestic scrap stays firm on shortages
  
  

India's imported aluminium scrap prices gained w-o-w aligning with the rise seen on LME. Meanwhile, domestic scrap prices held firm amid tight domestic supply.

BigMint assessed Middle East-origin Tense (8-9%) at $1,990/tonne (t), up $25/t w-o-w, whereas Extrusion 6063 edged up by $25/t to $2,890/t, CFR Nhava Sheva.

LME aluminium prices ease

LME aluminium three-month prices gained by 1% w-o-w to $3,108/t from $3,076/t on 10 February 2026. Meanwhile, LME aluminium inventories recorded outflow by 2% or 8,200 t from 495,175 t to 486,975 t.

LME aluminium rose w-o-w on tightening global supply and improving demand sentiment. Support came from low global inventories, production disruptions in Iceland, Mozambique and Australia, and power constraints limiting new smelter capacity in Indonesia. Strong Chinese manufacturing data and policy easing signals further boosted sentiment, outweighing concerns over rising exchange inventories and higher Chinese output.

Market insights

Following the rise in LME aluminium prices, the market prices gained for the week.

A trader mentioned, no major deals were concluded over the past few days, largely due to a widening gap between bids and offers. Market participants indicated significant bid-offer disparity amid ongoing LME volatility. Supplier offers remain elevated, while buyers are quoting at least $40-50/t lower, limiting fresh transactions.

Buying interest for imported scrap continues on a need-only basis. Primarily, large and medium-scale secondary producers are active in imports, backed by pre-existing supply commitments to OEMs for alloy ingots.

On the domestic front, scrap prices have remained firm, particularly for Tense scrap, amid acute shortages and rising ADC12 demand. In some regions, especially the South, Tense scrap is reportedly trading at premiums. A southern alloy producer noted receiving offers for Tense at INR 217,000-220,000/t ex-Chennai.

Chinese silicon prices

According to BigMint, China-origin silicon metal 553 prices stood stable w-o-w at $1,350/t on a CFR Nhava Sheva basis, supported by firm demand from aluminium alloy producers.

Outlook

We expect imported aluminium scrap prices to remain firm in the near term, supported by steady LME levels and tight global availability. Domestic scrap is also likely to stay elevated amid ongoing shortages and sustained ADC12 demand. However, wider bid-offer gaps and cautious buying may limit transaction volumes.