Wedoany.com Report on Mar 13th, In March 2026, the price of aluminum ADC12 alloy ingots in India saw a significant month-on-month increase, primarily driven by rising raw material costs and supported by automotive demand. In the Delhi NCR and Chennai regions, the price difference between scrap and semi-finished products remained stable at INR 41,000-43,000 per tonne.
Indian ADC12 offers surged sharply in the southern region to INR 285,000-290,000 per tonne, with some suppliers quoting INR 300,000 per tonne. Prices in the Pune region were similar, while offers in Delhi under 30-day payment terms were INR 280,000-285,000 per tonne. Original Equipment Manufacturers (OEMs) were reluctant to accept the high prices, leading to a significant bid-ask spread, with buyer bids at INR 270,000-280,000 per tonne.
The price increase stemmed from tight domestic scrap supply, with Chennai scrap priced around INR 240,000 per tonne and Delhi scrap at INR 232,000 per tonne. Arrivals of imported material decreased from 0.2 million tonnes in October 2025 to 0.13 million tonnes in January 2026, due to rising LME aluminum prices and currency pressures. Supply from the Middle East was disrupted, with the closure of Jebel Ali Port causing a suspension in cargo shipments.
Larger secondary producers purchased imported scrap at high prices, while domestic producers focused on meeting ADC12 demand. On the automotive front, a southern automaker informed BigMint: "Domestic vehicle sales remain robust." Concerns about LNG supply exist, but inventories are manageable.
Indian imports of ADC12 alloy fell approximately 64% month-on-month in January 2026 to 441 tonnes, all sourced from Malaysia. The LME aluminum price averaged $3,330 per tonne in March, up 7.7% month-on-month, with inventories falling 4.8% to 458,461 tonnes. Last week, aluminum prices surged, averaging $3,306 per tonne and reaching a near four-year high, driven by the closure of Qatar's Qatalum smelter and transportation disruptions at Bahrain's Alba.
In March, prices for imported aluminum scrap rose, and domestic scrap prices also strengthened amid tightening supply. US Tense scrap increased to $2,315 per tonne, and UK Wheel scrap rose to $3,120 per tonne. Chinese metallic silicon 553 prices climbed to $1,365 per tonne.
Sentiment in the Indian ADC12 market is expected to remain bullish in the short term, supported by automotive demand and tight scrap supply. Raw material costs are likely to continue pushing alloy prices higher, but procurement activity is cautious, with the market awaiting price settlements from automakers in April 2026.
