Indian domestic aluminium scrap prices remained flat on Tuesday for the third week. No trades were reported as markets across India remained shut. Manufacturers are currently on wait-and-watch mode and stayed away from booking imported scrap for their post lockdown production requirements. They are waiting for imported scrap prices to drop in the coming days following the fall in the three-month LME official aluminium contract.
Alloy makers hope for a clear price direction after mid-April before they return to the imported scrap markets. With the government planning to lift the lockdown in phases, these producers believe they could have enough time to stock up material.
The weekly index the domestic old cast (Purja/Tense) settled flat at Rs85,000/mt del Delhi consumer from the prior week. The weekly index for aluminium EC wire settled flat at Rs130,000/mt del Delhi consumer and del Mumbai consumer. The index for Indian old cast settled at Rs83,750/mt del Mumbai consumer as demand from alloy producers has ground to a halt.
The index for aluminium utensils settled unchanged at Rs106,000/mt del Delhi consumer, also due to absence of demand. The index for aluminium utensils settled flat at Rs103,500/mt del Mumbai consumer.
The three-month LME aluminium official contract fell by $67.5/mt to settle at $1,460.5 on Monday from the prior week.The Indian rupee depreciated by 0.25pc to Rs75.60 against US$1 on Tuesday from a week ago making imports costlier for Indian traders. This fluctuation in the value of the Indian rupee has forced traders to postpone their buying decision.
($1=Rs75.60)