Aluminium scrap spreads widen as India demand stays firm

Aluminium scrap spreads widen as India demand stays firm

The Germany-to-India aluminium UBC (used beverage can) corridor is trading at a 12.8% gross margin today, with landed costs near $2,040/MT. This represents the wider spread of the two primary east-bound corridors on the ArbiTrade platform, reflecting sustained Indian mill demand and relatively stable freight and handling costs from Central Europe.

Confidence in the aluminium route sits at 0.78, suggesting moderate reliability in execution and pricing transparency. Traders and brokers working this corridor should factor in typical landed-cost components: ocean freight (~$80–120/MT), insurance, port fees, and inland logistics from German collection points to loading terminals.

Copper scrap Poland-Turkey trade holds steady

The Poland-to-Turkey millberry copper corridor remains more compressed, with a 5.0% gross margin and landed costs around $8,575/MT. Confidence is lower at 0.72, reflecting tighter spreads and potential volatility in short-haul logistics or Turkish mill intake schedules.

At current LME copper prices and typical scrap premiums, this corridor offers less cushion for traders and recyclers but remains active for high-volume players with established Turkish counterparties and reliable collection networks in Poland and Central Europe.

Key observations for the day

• Aluminium UBC outperforms — the 12.8% margin reflects Indian demand resilience and lower competition on the Germany-India lane compared to intra-European routes.
• Copper spreads remain tight — short-haul Turkey routes typically compress when LME volatility is moderate and mill intake is steady.
• Confidence variance — the 6-point gap between the two corridors suggests execution risk is higher on the copper side, possibly due to last-mile logistics or counterparty variability.
• Landed-cost discipline — both margins are net of typical transport and handling; traders should verify real-time freight rates and terminal fees before committing to volume.

Neither corridor shows exceptional opportunity today, but both remain within normal trading ranges for Q2 2026. Recyclers and brokers should continue monitoring Indian mill intake schedules and Turkish scrap demand to identify any shift in margin structure over the coming week.

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ArbiTrade provides market intelligence and coordination only. It does not execute trades, hold funds, act as a counterparty, or guarantee pricing, execution, or profit. This article is general commentary, not investment, legal, or trading advice. Conduct independent diligence before transacting.