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Today's Top Raw Materials Headlines

*** India: Melting scrap prices remain unchanged d-o-d in Alang

*** India: BigMint's scrap index holds steady d-o-d amid scrap shortages

*** India's scrap trade slows down on wide bid-offer gaps

*** India: UK-origin shredded indicatives were assessed at $360/t CFR Nhava Sheva, down by $1/t compared to the last closing day (Friday)

*** India steel composite index drops further as market downturn deepens. 

*** Chinese UHP Graphite Electrode prices drop

*** Chinese Silicon metal producers hold price steady, market demand slows

*** Chinese Ferro Vanadium price drops further

Raw Material News

India: Melting scrap prices remain unchanged d-o-d in Alang

Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 16 Jun'25. According to BigMint's assessment, HMS (80:20) prices were at INR 32,500/t ($378/t) ex-yard. During the previous trading session, semi-finished and finished steel prices held steady in the region, and trade activity remained moderate. This price stability led scrap suppliers to keep their offers firm today.

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India: Melting scrap prices fall by INR 200/t d-o-d in Alang

Ship-breaking melting scrap prices in Gujarat's Alang market decreased by INR 200/t d-o-d on 14 Jun'25. According to BigMint's assessment, HMS (80:20) prices stood at INR 32,500/t ($377/t) ex-yard. Semi-finished and finished steel prices dropped by INR 200-300/t d-o-d due to limited procurement activities, while trading momentum in scrap was average. These factors prompted suppliers to adjust their offers downward.

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India: Melting scrap prices remain firm d-o-d in Alang 

Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 13 Jun'25. According to BigMint's assessment, HMS (80:20) prices were at INR 32,700/t ($380/t) ex-yard. Semi-finished and finished steel prices held almost steady in the previous trading session in the region. That apart, moderate trade activity in scrap prompted suppliers to keep their offers unchanged today.

Industry News

Freight market on alert after Israeli strikes on Iran

Israeli air and missile strikes on Iran in the early hours of Friday have raised the risk of disruption to shipping in the Mideast Gulf, prompting concerns over rising freight rates, insurance costs and vessel safety.

The escalation has heightened tensions in one of the world's most critical oil and shipping corridors, centred on the Strait of Hormuz — a chokepoint for about a fifth of global oil supply. Market participants warn that freight rates could surge if the conflict drags on or if Iran launches a retaliatory strike.

The Israeli operation targeted military facilities and infrastructure linked to Iran's nuclear programme, according to Israeli officials, who described the strikes as an act of self-defence. Israel has warned that Iran is closer than ever to acquiring a nuclear weapon.

Oil prices surged following the strikes, reflecting concern about possible supply disruptions. At 08:30 GMT, the Ice front-month August Brent contract was at $73.51/bl, up by $4.15/bl from its 12 June settlement. Nymex July WTI was at $72.24/bl, up by $4.20/bl. Earlier in Asian trading, Brent had climbed as high as $78.50/bl and WTI reached $77.62/bl.

Freight Market Reacts

Ships operating in or transiting the Mideast Gulf and the Strait of Hormuz could face higher costs and delays. "Insurance companies could raise the cost of additional war risk premiums (AWRP) if the conflict continues for a long time," a shipbroker said.

Other freight market participants echoed this view. "Mideast Gulf freight rates could spike because owners will avoid going there," another source said, adding that shipowners are likely to err on the side of caution.

The extent of the impact will depend on how long the hostilities last and the scale of Iran's retaliation. "The main thing to watch... is how Iran will retaliate. Shipping's stance would highly hinge on the degree of retaliation," a tanker broker said.

The situation could also trigger operational disruptions, particularly for cargoes yet to load. "There is a possibility that the latest spat could fall under the force majeure clause, which could allow the cancellation of charters," a broker said. Force majeure clauses in charter parties release both parties from liability when extraordinary events — such as war — prevent contract fulfilment. But it remains unclear whether this incident meets that threshold.

Higher oil prices could also push up bunker fuel costs, adding further upward pressure on freight rates, a shipowner said.

Freight and energy markets are closely watching for signs of Iranian retaliation, which could worsen supply risks and increase volatility. "That [Zionist] regime should anticipate a severe punishment. By God's grace, the powerful arm of the Islamic Republic's Armed Forces won't let them go unpunished," Iran's Supreme Leader Ayatollah Ali Khamenei said on 13 June on social media platform X.

While spot rates and war risk premiums are expected to rise in the short term, most market participants are adopting a wait-and-see approach. "The freight market has not yet reacted and rates in the Mideast Gulf did not jump on Friday, but nobody can predict how the conflict will develop further or how many more black swans there will be," a broker said

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Aluminium - Strong Substitute In Lightweighting, Says Vedanta Aluminium CMO Alok Ranjan

As automakers prioritize lower emissions and better fuel economy, its integration into non-load-bearing components is accelerating.

The automotive industry is looking for more efficiency and sustainability with a focus on lightweighting for better fuel efficiency, lower emissions and improved performance. Aluminium is emerging as a critical enabler for lightweighting, an alternative to steel particularly on non-load-bearing parts.

Lightweighting has become a necessity with its ability to reduce costs, enhance fuel efficiency and lower carbon emissions, according to Alok Ranjan, Chief Marketing Officer of Vedanta Aluminium, who was speaking at the Autocar Professional’s Vehicle Lightweighting Webinar.

“Aluminium, with two-thirds the density of steel, is highly durable, corrosion-resistant, and infinitely recyclable, making it a very strong substitute for various parts of an automobile,” Ranjan said.

Aluminium offers a great advantage in vehicle lightweighting, being significantly lighter than steel. Its lower weight directly improves fuel economy and lowers emissions, making it a compelling choice for OEMs and advanced vehicle designs. Aluminum enables manufacturers to produce more efficient vehicles without compromising on performance or safety.

Vedanta Aluminium, India’s largest aluminum producer and among the top six globally, is at the forefront of this transition. The company has an annual capacity of nearly 3 million tonnes of aluminum, with over 700 kilotonnes dedicated to automotive-grade alloys.

With the launch India's first primary foundry alloy (PFA) for alloy wheels in 2019, Vedanta has become a leading supplier to the automotive industry, providing materials for wheels, engine blocks, and a growing range of EV components.

The company offers three products from aluminium which goes into various components of an automobile - PFA which goes into alloy wheels, pellets which go into making extrusion for body parts and then mold products which can go into sheets in various parts of the automobile. 

Ranjan noted that the properties of aluminium – infinitely recyclable, highly durable, and corrosion resistant - translate into significant benefits for vehicle manufacturers and consumers alike, and makes it an important source of lightweighting. Lightweighting through aluminum can lead to a 4-5% reduction in carbon emissions, a 22% mass saving, and roughly a 5% reduction in cost per mile, he added.

“When we talk about speed or acceleration, which is also an important criterion, aluminum vehicles have far better pickup and acceleration. Thanks to the lower mass, there is an edge. Also since it is durable, recyclable and corrosion resistant, the cost of maintenance is typically on the lower side, it could be 10-15% lower as compared to its alternative,” Ranjan said.

When it comes to battery performance, he said aluminum offers significant benefits there as well. “When we look at the battery life, aluminum usage results in much lesser frequent charging cycles and much better longevity of the battery. This is especially important as energy storage becomes an important criterion.”

Though aluminum may present a higher upfront material cost compared to steel, Ranjan emphasized the importance of looking at the total cost of ownership. Considering its positive impact on fuel economy, reduced maintenance needs, extended battery life, and higher resale or salvage value due to its recyclability, aluminum presents a more economically favorable choice.

Going forward, Ranjan sees strong growth potential for aluminum. Right now, per capita consumption of aluminum in India is one eight despite being the third largest car maker. Aluminum usage per vehicle in India is 70-80% of global standards. However, government policies focusing on cleaner and efficient vehicles provide a significant growth potential.

“So, there is a policy push, there is a sustainability push. And if we rely on the data coming from other countries like China or the West, we see significant growth in terms of EVs which again means up to 80 kgs per vehicle more aluminum usage,” he added.

According to Ranjan, the requirement of aluminum in India is at around 6 million tonnes per annum, while the current capacity is around 4 million tons. Vedanta Aluminium is augmenting its capacity to around 5 million tons. 

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