Aluminium is the second most valuable metal in most industrial scrap lots after copper. It shows up everywhere: window and door sections, machine housings, radiators, cable, utensil-grade sheet, die-cast parts and packaging. Because aluminium is light, sellers often underestimate how much value is sitting in their stores. This guide covers how aluminium scrap is graded and priced in India and how industries in Varanasi and Purvanchal can sell it well.
How aluminium scrap is priced
The price chain is similar to copper:
- LME aluminium sets the international reference.
- Domestic primary aluminium and secondary ingot prices (and MCX aluminium) translate this into rupees.
- Grade discount reflects alloy, cleanliness, coatings and expected melting loss.
- Local costs such as freight, handling and the buyer's margin.
Secondary aluminium smelters and die-casting units are the main buyers. Their demand rises and falls with the automobile, construction and electrical sectors.
Main aluminium scrap grades
Extrusion scrap (6063)
Window and door sections, architectural profiles and cut lengths. Clean, unpainted 6063 extrusion is one of the most valuable aluminium scrap grades. Anodised extrusion is close in value; painted or powder-coated extrusion is discounted.
Wire and cable scrap
Bare EC-grade aluminium conductor (from power lines) is high purity and well priced. Insulated aluminium cable is priced on recovery.
Sheet scrap
Utensil-grade sheet, cuttings and old sheet products. Clean sheet is mid-to-high value.
Cast aluminium
Engine parts, pump bodies, motor housings and die-cast components. Cast alloys contain silicon and other elements, so they sell for less than wrought grades.
UBC (used beverage cans)
Mostly from packaging streams; less common in industrial lots.
Radiators
Aluminium radiators, often with copper tubes. Priced by aluminium and copper content.
Turnings and dross
Machining chips and furnace dross have lower recovery and are priced accordingly.
International ISRI names are often used in trade: Tense (mixed clean aluminium castings), Taint/Tabor (clean mixed old alloy sheet) and Zorba (shredded mixed non-ferrous, mostly aluminium). Using these terms helps when dealing with larger buyers and importers.
Indicative aluminium scrap rates (October 2026)
| Grade | Indicative ₹/kg |
|---|---|
| Clean extrusion 6063 (unpainted) | 175 – 190 |
| Painted / powder-coated extrusion | 155 – 170 |
| Bare aluminium wire (EC grade) | 175 – 190 |
| Clean sheet / utensil grade | 160 – 175 |
| Cast aluminium | 140 – 155 |
| Mixed aluminium with attachments | 120 – 140 |
| Turnings / chips | Case-by-case |
These are indicative bands for industrial lots in Purvanchal. Actual rates depend on the day's market and the condition of your material.
Why mixing reduces aluminium value
Aluminium alloys behave differently in the furnace. Wrought alloys such as 6063 extrusion can go back into high-value applications, while cast alloys are remelted into lower-value castings. When a buyer receives a mixed lot, they either price everything at the lowest grade or spend labour sorting it. Either way, the seller pays.
Practical steps to sell aluminium scrap for more
- Separate cast from wrought. Keep extrusion, sheet and wire apart from castings.
- Remove iron. Screws, rivets, brackets and inserts reduce value. A magnet is your best friend for sorting.
- Remove rubber, plastic and glass. Window sections with rubber gaskets and glass fetch less.
- Separate painted from unpainted. Coatings increase melting loss.
- Keep it dry and clean. Oily turnings and wet material attract deductions.
- Store securely. Aluminium is light and easy to steal; keep it in a locked area.
Aluminium in electrical equipment
Many transformers, motors and cables use aluminium instead of copper. When you dismantle or replace equipment, find out which metal is used. An aluminium-wound transformer is worth less than a copper-wound one of the same size, so accurate identification avoids surprises.
Aluminium cable scrap
Insulated aluminium cable is priced on aluminium recovery percentage, just like copper cable. The buyer will strip a sample to calculate the aluminium content. Steel-armoured cable has lower recovery. Ask to witness the sample test.
Market outlook
Demand for aluminium is linked to construction, automobiles, electrical transmission and packaging. India's growing use of aluminium in vehicles and power infrastructure supports long-term demand for good-quality scrap, though prices remain volatile in the short term. For sellers, this means good-quality, well-segregated aluminium will always find a buyer, while mixed and contaminated lots face the most price pressure.
Documentation and tax
As a metal scrap, aluminium sales between businesses carry GST, and the October 2024 GST changes on metal scrap (reverse charge for supplies from unregistered persons and TDS on B2B supplies) apply. TCS rules under the Income Tax Act may also be relevant. Confirm with your accountant and ensure a proper invoice and e-way bill accompany each lot.
A worked example
A building contractor in Varanasi replaces old aluminium windows on a hospital project and collects 1.2 tonnes of material. Sold "as is", with glass, rubber gaskets, iron screws and painted frames mixed in, the lot is priced as mixed aluminium with heavy deductions. If the contractor removes glass and rubber, pulls out iron fasteners with a magnet check, and separates unpainted anodised sections from painted ones, the result is two clean grades: unpainted extrusion and painted extrusion. On 1.2 tonnes, moving from the mixed rate to the extrusion rates can add well over ₹30,000 to the realisation, for a day or two of labour.
Aluminium scrap from factories in Purvanchal
Aluminium scrap in eastern UP comes from many directions. Fabrication and glazing contractors generate extrusion offcuts. Power distribution projects and electrical contractors generate aluminium conductor and cable. Pump and motor workshops produce cast aluminium housings. Food processing, pharmaceutical and packaging units generate sheet and foil scrap. Sonbhadra's industrial belt, home to large aluminium and power operations, also creates specialised scrap and by-products that require experienced handling. Each source produces a different grade, which is why a buyer who understands grades will offer more than one who simply buys "aluminium".
Storage tips
Aluminium does not rust like iron, but it does oxidise and attract dirt. Store it indoors or under cover, on pallets rather than soil. Keep bins for each grade labelled clearly so that production and maintenance staff drop scrap into the right container. Record weights as material goes into storage; this makes it easier to spot theft and to estimate lot size when you call buyers.
When to sell
Because aluminium is light, it takes up a lot of space. Many factories wait until a store room is full, but large lots of mixed, dusty aluminium are harder to grade. Selling every month or quarter, with grades already separated, usually produces better average rates and frees space.
Aluminium identification quick guide
| Test | Wrought (sections, sheet, wire) | Cast (housings, pump bodies) |
|---|---|---|
| Surface | Smooth, uniform, often extruded profile | Rough, grainy, moulded shapes |
| Fracture | Bends before breaking | Breaks with a granular face |
| Typical alloys | 6063, 1xxx, 3xxx, 5xxx | Silicon-rich casting alloys (LM6, ADC12) |
| Value | Higher | Lower |
A magnet removes iron, a file or grinder shows whether a shiny surface is aluminium or plated steel, and an XRF analyser confirms the alloy family when large lots are at stake. If you are unsure, keep doubtful pieces in a separate "mixed aluminium" bag so they do not drag down the clean grades.
How Kabadi24 handles aluminium scrap
Kabadi24 grades aluminium on-site at your factory in Varanasi or anywhere in Purvanchal, separating extrusion, sheet, wire, castings and mixed material. Each grade gets its own rate in a written quote. We provide loading, transport and weighbridge weighment, and every deal is backed by a GST invoice. Our head office is at Industrial Area Phase 1, Ramnagar, Chandauli, and we also serve industries through our Gurugram branch.
Conclusion
Aluminium scrap is valuable, but only when it is correctly graded. Separate cast from wrought, remove iron and non-metal attachments, and ask for grade-wise written rates. These simple steps can add tens of rupees per kilogram to your realisation.