Domestic aluminium scrap prices remained volatile despite higher international prices and low demand in local markets. Traders lowered offers for few grades to attract secondary manufacturers, who stayed away due to production cuts caused by unavailability of labourers and weak demand for alloys.
The official three-month LME contract for aluminum jumped by $51/mt in a week to $2,393.5/mt from $2,342.5/mt last Monday.
The difference in prices in Delhi and Mumbai has narrowed significantly as the domestic prices are now more aligned with imported scrap prices due to a slump in domestic demand.
The weekly Davis Index for EC wire settled at Rs175,000/mt del Mumbai consumer, down by Rs450/mt ($6.03/mt) due to production cuts at many secondary units.
In Maharashtra, demand has slumped due to lockdown restrictions and a slowdown in industrial activities. Auto companies and small manufacturers are staring at demand uncertainty as well as labour crunch.
The weekly Davis Index for Old cast (Purja) for Mumbai on Tuesday settled at Rs135,000/mt del consumer, up by Rs6,050/mt ($81.11/mt) due to shortage of scrap while the index for Old sheet in Mumbai jumped by Rs1,550/mt to Rs139,000/mt del consumer on Tuesday.
The weekly index for aluminium utensils on Tuesday settled at Rs147,000/mt del Mumbai consumer, up by Rs7,800/mt in sync with the jump in official three-month LME contract.
The weekly Davis Index for Old sheet in Delhi gained Rs425/mt to Rs138,500/mt del consumer on Tuesday. The weeky Index for EC wire settled at Rs174,000/mt from Rs172,700/mt del consumer, up by Rs1,300/mt on Tuesday.
There have been almost no trades following the announcement of lockdown. Most prices quoted by market participants for Delhi were last heard on Monday morning. Scrap yards are operating at 25pc capacity. Lack of new orders from manufacturers has impacted sales. Buyers are interested in thin volumes to meet immediate requirements.
The weekly Davis Index for old cast (Purja) settled at Rs133,500mt del Delhi consumer, down by Rs450/mt driven by weak demand from secondary manufacturers.
The weekly Index for aluminium utensils settled at Rs143,000/mt del Delhi consumer, up by Rs800/mt.