OfBusiness Non Ferrous Scrap Dailies

8th May’23

Price

• LME Aluminium opened at $2297/mt last Friday, with its low and high at $2,277.5/mt and $2,324/mt respectively before closing at $2,321/mt, an increase of $25.5/mt or 1.11%.
• At last Friday’s night session, the most-traded SHFE 2306 Aluminium contract opened at 18,345 yuan/mt, with the highest and lowest prices at 18,500 yuan/mt and 18,315 yuan/mt before closing at 18,480 yuan/mt, up 35 yuan/mt or 0.19%.
• ALUMINIUM Delhi Market Price:-
  • PURJA: Rs.163+
  • BARTAN: Rs.174+
  • WIRE: Rs.208+
  • COMPANY INGOT: Rs.212+
  • COMPANY ROD: Rs.230+
  • LOCAL ROD: Rs.216+/233
• ALUMINIUM Bombay Metal Exchange Prices:-
  • Aluminium Utensil Scrap: Rs.157
  • Alum. Extrusion Scrap: Rs.181
  • Aluminium Wire Scrap: Rs.203
  • Aluminium Ingots: Rs.210
  • Aluminium Rod (9.5 MM): Rs.213

Demand and Supply

• Intensified concerns about US debt default and rumors of interest rate hikes are putting downward pressure on the Aluminium market.
• The banking crisis remains unresolved, contributing to a strong risk aversion sentiment in the market.
• Downstream operating rates are expected to decline, impacting Aluminium demand.
• Domestic Aluminium supply has slightly increased, with a significant drop in industry costs.
• The production of Aluminium billets has increased, but if end demand remains low, there may be a rise in billet inventory, leading to increased production of ingots. However, low inventory levels may provide some support to Aluminium prices. Factors to monitor include macroeconomic conditions and supply in Yunnan.

News

• Alba Aluminum’s first-quarter net profit fell 68% year-on-year on weak global demand
• Aluminum Company of Bahrain (Alba), the world’s largest Aluminium smelter outside of China, posted a profit of 47.5 million dinars ($126.2 million) in the first quarter of 2023, down 68% from 146.8 million diras last year. Mum ($390.4 million).

OFB’s Opinion

• The anticipation for Aluminium scrap prices is that they may come under downward pressure due to the increase in supply of Aluminium ingots. As more liquid Aluminium is processed into billets, the supply of ingots is decreasing. However, if the demand for Aluminium remains lower than expected, the inventories of billets may rise, prompting smelters to produce more ingots. Despite this, the low levels of exposed Aluminium inventories may provide some support for Aluminium prices. Overall, it is expected that Aluminium scrap prices in the domestic market will remain stable in the coming days.