India: Imported aluminium scrap prices show mixed trends despite LME strength, supply tightness
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- Buyers delay purchases amid price drop expectations
- Logistics disruptions continue to restrict import flows
India's imported aluminium scrap prices exhibited mixed movements w-o-w as of 28 April 2026, despite an uptrend on the London Metal Exchange (LME), ongoing geopolitical tensions, and constrained global supply.
LME aluminium strengthens w-o-w
Three-month aluminium prices on the London Metal Exchange (LME) increased by $35.5/t to $3,588/t on 27 April 2026 from $3,552.5/t on 20 April 2026, indicating continued strength in market sentiment.
Meanwhile, aluminium inventories on the exchange declined by 13,550 t to 372,700 t from 386,250 t over the same period, pointing to a drawdown in stocks alongside the price uptick.
Market scenario
Market sentiment in Indias imported aluminium scrap segment remains cautious and subdued as of end-April 2026, even as aluminium prices on the London Metal Exchange (LME) have strengthened. Scrap prices have shown w-o-w movement, with limited pass-through of higher LME levels into imported scrap valuations, keeping volatility elevated and sentiment restrained.
Buying activity continues to stay weak, with market participants largely postponing fresh procurement amid expectations of further price adjustments and ongoing uncertainty around LME direction.
Overall market conditions remain subdued, with limited trading interest across regions. Sentiment was further impacted by logistical challenges and intermittent supply disruptions, including restricted flows via the Strait of Hormuz, which continued to tighten import availability.
While some volumes from the Middle East are now being routed through alternative ports such as Khor Fakkan, delays persist due to congestion, with priority being given to essential cargo.
Market feedback also indicates that scrap availability remains tight at month-end, with supply moving slowly and price movements lagging behind purchase offers, reflecting a cautious and wait-and-watch approach among buyers.
Domestically, aluminium prices remain firm, while the scrap market continues to stay tight across both northern and southern regions, especially for casting-grade Tense scrap, due to acute supply constraints.
Secondary producers are encountering persistent procurement difficulties, which has led to cautious buying activity and relatively subdued operating rates across the industry.
Chinese silicon prices
According to BigMint, China-origin silicon metal 553 prices remained steady w-o-w at $1,350/t on a CFR Nhava Sheva basis amid limited buying interest.
Outlook
Sentiment in India's imported aluminium scrap market is likely to remain cautious, with prices tracking LME movements while staying supported by tight global supply conditions and ongoing logistical constraints. Buying activity may remain subdued as participants continue to adopt a wait-and-watch approach amid uncertainty over near-term price direction. However, persistent supply tightness and steady demand from secondary producers are likely to prevent any sharp downside, keeping the market broadly stable with intermittent volatility.
