Since July, the domestic supply of aluminium scrap has remained tight. Coupled with multiple policy adjustments in the recycled metal industry, this has led to a decline in industry activity. Some secondary aluminium processing enterprises are facing difficulties in procuring aluminium scrap raw materials and poor industry profitability.

The Indian aluminium alloy ingot market has witnessed a price decline in recent weeks.

During the previous week, the Indian base metals market displayed a mixed performance, with positive and negative moves and some minor price swings.

The Indian domestic aluminium alloy ingot market remained stable, thanks to several factors such as range-bound scrap, correction in futures contracts by US$50 to US$70 per tonne, and price cuts by primary producers by up to INR 3,750 per tonne ex-works.

Recently, the quotations of ADC12 in Malaysia and South Korea fell to around $2,260-2,280/mt, and the domestic prices also fell in May.

In terms of cost, tight aluminium scrap supply, combined with recyclers reluctant to sell, prevented the prices of aluminium scrap, especially tense scrap, from falling with aluminium prices. The current cost is firm around 19,200 yuan/mt, providing strong support for ADC12 aluminium alloy prices.