en.Wedoany.com Reported - Despite ongoing volatility in the global scrap market and higher aluminum prices on the London Metal Exchange (LME), Indian imported scrap aluminum prices remained firm week-on-week.
According to the latest data from assessment agency BigMint for CFR Nhava Sheva delivery, UK-origin Zorba 95-5 scrap prices rose by $60/ton week-on-week, from $2,980/ton to $3,040/ton, supported by stronger sentiment in imported scrap and tighter overseas supply. US-origin Tense 6-7% scrap increased by $20/ton week-on-week, from $2,790/ton to $2,810/ton, driven by steady buying interest and sustained market strength.
The LME three-month aluminum price moved higher week-on-week, closing at $3,716/ton on June 2, 2026, up $34/ton from $3,682/ton on May 26. LME aluminum prices remained firm, primarily due to escalating tensions in the Middle East and risks along the Strait of Hormuz shipping route, which heightened concerns over disruptions to global aluminum supply. Market sentiment was further supported by the Cash-3M premium rising to near 19-year highs, indicating extremely tight spot metal supply; meanwhile, proposed bauxite export restrictions in Guinea and stricter mining controls in China also exacerbated raw material supply concerns. Concurrently, LME aluminum inventories fell by 1,350 tons week-on-week, from 339,350 tons to 338,000 tons.
Imported scrap aluminum prices rose this week, supported by higher LME aluminum prices and persistently tight global scrap supply. Despite the upward price trend, market participants largely remained on the sidelines, with many secondary aluminum producers adopting cautious procurement strategies due to a weak rupee, market volatility, and uncertainty over short-term price direction. Import arrivals into India remained limited due to uncompetitive overseas offers, ongoing supply constraints, and high freight costs. Meanwhile, secondary alloy producers continued to face challenges from tight raw material supply and rising logistics expenses, further squeezing production margins. Globally, supply conditions remained tight, while freight costs continued to be a major concern for import-dependent buyers.
Buying activity slowed compared to previous weeks, but scrap prices remained firm as supply constraints provided strong market support. Demand from the ADC12 and secondary alloy sectors remained healthy, helping sustain high scrap prices, despite increased buyer resistance at elevated levels. Market participants noted that any further increase in scrap prices could begin to impact alloy demand and exert additional pressure on margins across the value chain.
Domestically, aluminum prices remained firm, supported by tight scrap supply in northern and southern regions. Foundry-grade Tense scrap continued to face severe supply shortages, creating procurement challenges for secondary producers, and although buying sentiment was cautious, prices failed to see a significant correction. Overall, the market was strongly supported by supply-side constraints, but buying activity grew increasingly cautious as participants assessed the sustainability of current price levels.
According to BigMint's latest assessment, Chinese-origin silicon metal 553 prices edged up by $5/ton week-on-week, from $1,430/ton last week to $1,435/ton on a CFR Mundra basis, supported by firm import offers and stable market sentiment.
Due to tightening global supply conditions, high LME aluminum prices, and ongoing geopolitical risks along key trade routes, Indian imported scrap aluminum prices are expected to remain firm in the near term. However, cautious buying activity and resistance at higher price levels may limit significant upside potential.
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