The weekly Davis Index for domestic Taint/Tabor (old sheet) remained unchanged at Rs98,000/mt del Delhi consumer on Tuesday for the fifth consecutive week as markets were shut amid the COVID-19 lockdown. Indian government has extended the lockdown till May 3.
Indian secondary alloy makers are in tight liquidity situation as the extended lockdown has delayed resumption of industrial activities. Traders stayed away from the market as they too are fraught with a cash crunch and in absence of demand for scrap from alloy makers. The weekly index for imported Taint/Tabor was flat at $939/mt cfr India on Friday amid no fresh booking of imported scrap. Davis Index heard booking of aluminium scrap from Australia, but transactions are yet to be confirmed.
With the rising number of COVID-19 cases in Mumbai and Delhi, scrap dealers feel industries in these regions are unlikely to reopen even after May 3. The weekly index for domestic old cast (Purja/Tense) settled unchanged at Rs85,000/mt del Delhi. The index for imported aluminium old cast settled unchanged at $934/mt cfr India on Friday.
The weekly index for aluminium EC wire remained flat at Rs130,000/mt del Delhi consumer and del Mumbai consumer. The index for Indian old cast settled flat at Rs83,750/mt del Mumbai consumer.
The indexes for aluminium utensil were unchanged at Rs106,000/mt del Delhi consumer and at Rs103,500/mt del Mumbai consumer.
Market participants are reluctant to book imported scrap as industries have remained shut for the last five weeks. The continued depreciation of Indian rupee has also increased the price of imported scrap. With an additional 42 paise depreciation in the Indian currency from a week ago, the rupee is now valued at Rs76.66 against the US dollar.
($1= Rs76.66)