The weekly Indian secondary aluminium alloy prices dropped by Rs500/mt ($6.99/mt) to Rs115,000/mt ex-works Delhi on Monday, driven by a decline in imported scrap prices.
Alloy makers supplying ADC12 to small- and medium-sized die casting units in NCR and surrounding areas lowered prices by Rs500/mt ($6.99/mt) to Rs115,000/mt Monday.
Suppliers to larger ingot consumers kept weekly ADC12 prices unchanged at Rs117,500/mt del Delhi consumer.
Alloy prices are under downward pressure from seaborne scrap markets. Indian import prices fell in step with weaker demand from China as a shutdown in manufacturing has caused an oversupply of scrap relative to global demand.
The weekly Davis Index for Indian imports of Tense scrap dropped by $54/mt on Friday to settle at $1,050/mt cfr. The index for imports of Taint/Tabor dropped by $51/mt and settled at $1,062/mt cfr India Friday.
Secondary aluminium alloy prices dropped by Rs833/mt to Rs112,667/mt ex-works Mumbai from the week prior. Die casters in South India purchased ADC12 at Rs105,000- 107,000/mt, but manufacturers did not confirm deals at this rate.
Alloy manufacturers in Kolkata sold ADC12 at Rs110,000/mt, down by Rs2,000/mt amid decreased input cost and plummeted demand from China.
The Davis Index for LM6 fell by Rs1,000/mt and settled at Rs137,000/mt driven by a fall in primary aluminium ingot prices.
The last heard export trade to China was two weeks ago, when ADC12 makers sold ADC12 at $1,750/mt cfr China. With the Chinese markets shut, alloy makers await clarity on next export orders.
($1=Rs71.50)