India ADC12 Aluminum Alloy Ingot Prices Decline Month-on-Month in July

en.Wedoany.com Reported - In July 2026, India's ADC12 aluminum alloy ingot prices declined month-on-month, following a historical peak in May. The price correction was primarily driven by lower aluminum scrap costs, improved fuel supply, sufficient OEM inventories, sluggish spot purchases, and increased inflows of competitively priced duty-free ADC12 imports, particularly evident in the southern Indian market. Despite the price decline, demand from the automotive sector remained healthy, though concerns over the supply of high-quality aluminum scrap persisted. The spread between aluminum scrap and ADC12 alloy ingots narrowed to approximately INR 76,000-82,000 per ton in Delhi NCR and Chennai, mainly due to simultaneous price declines in both.

Due to softening raw material costs, ADC12 alloy ingot prices fell across major Indian markets. City-specific prices were: Chennai INR 338-342/kg, Delhi INR 345-350/kg, and Pune INR 338-340/kg. The overall trading range stood at INR 345,000-350,000 per ton. The significant price correction in southern India reflected a sharp drop in Tense scrap prices, weak ADC12 demand, and increased competitively priced imports. Most OEMs continued to hold inventory from previously booked Malaysian shipments, reducing new procurement needs, and purchasing activity remained subdued. Most OEMs had yet to finalize ADC12 settlement prices for July 2026, with negotiations prolonged due to price disagreements between suppliers and buyers. ADC12 import bookings also slowed in recent weeks, as domestic price corrections narrowed import arbitrage opportunities, while a large volume of previously booked cargoes continued to arrive in India, dampening buying interest. In contrast, the northern market remained relatively firm, supported by persistent shortages of Tense scrap and aluminum wheel scrap.

In the first five months of 2026 (5MCY'26), India's ADC12 alloy ingot imports surged 637% year-on-year to 5,538 tons, compared to 751 tons in the same period last year. The growth was primarily driven by a widening price spread between domestic and imported materials, prompting buyers to source from free trade agreement countries, especially Malaysia. LME aluminum prices corrected in early July, influenced by the reopening of the Strait of Hormuz, faster-than-expected resumption of operations at EGA Al Taweelah, profit-taking, and expectations of increased global aluminum supply (supported by the planned restart of Slovakia's Slovalco, robust Chinese output, and expansion of Indonesian smelting capacity). Consistent with the decline in imported scrap prices, domestic aluminum scrap prices also fell in July, with the largest correction in southern India. US-origin Tense scrap fell by USD 282/ton month-on-month to USD 2,441/ton, while UK-origin Wheel scrap dropped by USD 308/ton to USD 3,145/ton. China-origin Silicon Metal 553 fell by USD 69/ton to USD 1,357/ton on a CFR Mundra basis.

In the near term, ADC12 prices are expected to remain under pressure due to ample OEM inventories, cautious procurement strategies, and weak spot demand. The medium-term outlook is cautiously optimistic, with market participants closely monitoring the EU's proposed 15% export tax on aluminum scrap (expected to be announced in September) and whether the UAE government will extend its aluminum scrap export ban beyond October 2026. Further tightening of global scrap supply could support aluminum scrap prices, thereby providing new upside for India's ADC12 alloy market in the coming months. A correction in settlement prices by major automakers in July may also weigh on domestic prices, but tight supply of high-quality casting scrap, ongoing scrap export restrictions in the UAE, and the proposed EU measures are expected to limit any significant downside in ADC12 prices.