Aluminium scrap import prices in India have moved higher week-on-week as supply tightens following disruptions at key ports in the United Arab Emirates amid escalating US-Iran tensions.
Market participants said uncertainty in Gulf logistics has reduced the availability of scrap cargoes, with some UAE suppliers temporarily halting offers. The disruption has been linked to operational interruptions at major regional hubs such as Jebel Ali Port, a key gateway for scrap shipments to Asia.
The Gulf region is a significant supplier of non-ferrous scrap to India, accounting for roughly a quarter of the country’s aluminium scrap imports in recent years. With shipments delayed and offers slowing, Indian buyers are facing tighter availability and firmer prices in the spot market.
Logistics costs have also surged as shipping lines introduce additional surcharges and war-risk insurance premiums for vessels moving through the Gulf. Industry sources report that conflict-related insurance costs have increased by as much as 100–200%, while emergency service charges of $2,000–3,000 per container are being added for cargo moving through affected routes.
The supply disruption comes at a time when global aluminium markets are already under pressure from rising prices triggered by geopolitical tensions in the Middle East. Analysts warn that prolonged instability around the Strait of Hormuz and Gulf shipping routes could further tighten the supply of scrap and primary aluminium globally.
For Indian recyclers and secondary aluminium producers, the situation could translate into higher raw-material costs and increased volatility in the coming weeks, especially if logistics disruptions in the Gulf persist.
