The weekly Davis Index for ADC 12 settled unchanged at Rs118,000/mt ex-works Mumbai, Friday, on the absence of domestic demand downstream industries.
The weekly Davis Index of LM6 settled at unchanged at Rs138,500/mt ex-works Mumbai. Secondary alloy makers are operating at 35pc of their capacity for the last two weeks.
Manufacturers are relying on exports of ADC 12 to China albeit at lower prices. Davis Index heard trades at $1,400/mt cif China. Though, producers believe prices in the domestic market are holding up due to speculations of increased export prices to China in the near term.
The weekly index for ADC 12 in Delhi remained flat at Rs110,900/mt ex- works, up by Rs1,650/mt as auto manufactures have resumed partial operation from May 18. Davis Index heard offers at Rs106,000 -108,000/mt ex Kolkata producer. Manufacturers were ready to sell alloys at lower rates for cash transactions. Downstream industries failed to clear long pending dues citing liquidity crunch due to COVID-19.
The manufacturers located outside containment zones slowed down production amid a lack of demand in downstream industries. Die-casters are yet to resume alloy purchases. Though automakers have gradually resumed production, die-casters have not booked any orders so far.
($1= Rs75.90)