Indian ADC 12 aluminium alloy prices softened in the week ended October 21 as downstream demand remained subdued ahead of Diwali. Producers in Mumbai quoted Rs 295,000–300,000/mt ($3,104–3,156/mt) ex-works, with the average falling Rs 1,500/mt week on week to Rs 297,500/mt ($3,130/mt). In Delhi, prices stood at Rs 299,000–300,000/mt ($3,146–3,156/mt), averaging Rs 299,500/mt ($3,151/mt), down Rs 500/mt from the previous week. The sharper decline in Mumbai widened the average price gap between the two markets to Rs 2,000/mt. Producers reported that ADC 12 demand was 15–20% lower than during the previous festive season. Downstream automotive component manufacturers were fulfilling existing orders using inventory stocks and refraining from replenishing material ahead of Diwali, which will be celebrated across India from November 6–12. Market participants expect buyers to return to the market for restocking no earlier than November 13, suggesting that purchasing activity will remain subdued through the festival period. Regional price movements indicated comparatively greater downward pressure in Mumbai, where quotations covered a wider range of Rs 295,000–300,000/mt, compared with Rs 299,000–300,000/mt in Delhi.
The narrower price range and smaller weekly decline in Delhi suggested firmer offers in the northern market, although producers in both regions reported weak buying interest.
On the raw material front, producers said aluminium scrap availability was adequate in the domestic market. Clean, pre-consumer aluminium scrap, particularly extrusion offcuts, aluminium wire scrap and lithographic sheets, was trading at prices largely linked to LME aluminium levels.
This limited opportunities for ADC 12 manufacturers to procure higher-quality feedstock at discounted rates, even as weak downstream demand constrained their scope to pass on input costs. International ADC 12 assessments highlighted competition among Asian suppliers. Malaysia-origin material averaged $2,995/mt FOB, compared with $3,030/mt FOB for Thailand-origin material and $3,080/mt CIF Japan for China-origin ADC 12. India's ADC 12 export offers to Japan were assessed at $2,950–3,000/mt CIF, averaging $2,975/mt. On a CIF Japan basis, Indian-origin material was therefore assessed $105/mt below China-origin material, indicating a competitive price position in the Japanese market. Malaysia-origin material was priced $35/mt below Thailand-origin material on an FOB basis, although differences in freight, insurance and delivery terms need to be considered when comparing these offers.
LME aluminium prices dipped below the $3,000/mt threshold during the week before recovering to finish higher by October 21. The three-month contract fell from $3,013.50/mt on October 14 to $2,994.50/mt on October 15, before recovering to around $3,012/mt on October 19 and subsequently rising to $3,024/mt on October 21, marking a weekly gain of 0.35%. The cash settlement price also strengthened, increasing from $3,010/mt on October 14 to $3,031/mt on October 21, up 0.70%. The recovery in aluminium prices followed the midweek dip, with renewed buying helping the three-month contract regain the $3,000/mt level and extend gains through the end of the assessment period. Expectations of additional supply from China and Indonesia continued to temper concerns over disruptions to Gulf production, limiting the benchmark's recovery. Emirates Global Aluminium (EGA) announced that it had restarted 631 of the 1,262 reduction cells at its Al Taweelah smelter following the March 28 attack that forced the facility into an emergency shutdown. The company expects to restore full production during the first quarter of 2027. The gradual restart could ease supply constraints over time, although output will take time to recover fully as the cells stabilise.
Meanwhile, low LME inventories and elevated physical premiums continued to provide underlying support to aluminium prices. Despite the modest weekly recovery in LME aluminium, Indian ADC 12 prices weakened as limited downstream restocking ahead of Diwali and subdued automotive component demand outweighed support from the international benchmark. Market participants expect a clearer indication of demand recovery after the festival period, when downstream manufacturers return to replenish inventories.
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