India's ADC 12 market weakened after a major automotive manufacturer reduced its purchase price to ₹304,500/mt from ₹305,000/mt, in line with the decline in LME aluminium prices. While the price reduction reflected the downward movement in the international benchmark, some secondary alloy producers continued to hold offers at ₹305,000/mt, hoping buyers would accept these levels. The market also faced subdued buying interest from Japan and falling international aluminium scrap prices.
LME aluminium three-month prices declined 3.0% to $3,114/mt on October 7 from $3,210/mt on September 30, while cash settlement prices fell 3.2% to $3,102.50/mt from $3,204/mt over the same period.
In the domestic market, ADC 12 prices in Mumbai averaged ₹305,000/mt (approximately $3,151/mt), down ₹4,000/mt, while Delhi prices averaged ₹304,750/mt (approximately $3,149/mt), down ₹2,750/mt. Currency conversions are based on an indicative USD/INR exchange rate of ₹96.79 per dollar on October 8.
The automotive manufacturer's revised purchase price added to the downward adjustment in domestic ADC 12 prices as aluminium benchmarks declined. However, the difference between the revised purchase price of ₹304,500/mt and producers' offers at ₹305,000/mt indicated that some suppliers were still seeking to maintain their selling levels. Market participants were watching whether buyers would accept existing offers or push for further reductions in line with LME movements.
In the export market, Indian-origin ADC 12 prices CIF Japan averaged $3,080/mt, down $12.50/mt. China-origin ADC 12 CIF Japan offers eased to $3,100/mt from $3,120/mt on September 30, while Thailand FOB offers declined to $3,060/mt from $3,120/mt. Malaysia FOB offers fell to $3,075/mt from $3,105/mt on October 1.
International aluminium scrap prices also softened alongside the decline in LME aluminium prices. Tentative offers stood at $2,920–3,090/mt for extrusion scrap, $3,060–3,150/mt for aluminium wheels, $6,500–6,900/mt for Talk, $2,620–2,640/mt for Tense, around $2,080/mt for Tally, $2,580–2,750/mt for TT and $2,580–2,700/mt for Zorba. Tense and Tally prices reportedly declined by around $25–35/mt on Wednesday following the fall in LME aluminium prices. Malaysia's mixed aluminium castings scrap (Tense) was assessed at $2,350/mt on October 5, down from $2,400/mt on September 28.
Market participants reported limited buying interest from Japanese customers, restricting fresh export orders. Lower scrap prices have eased feedstock costs for secondary alloy producers, while the decline in LME aluminium prices has prompted adjustments in domestic and export ADC 12 prices. With producers attempting to hold offers above the revised automotive purchase price, near-term market direction will depend on further LME movements, buyer acceptance of current offers and any improvement in Japanese demand.
