Domestic aluminium prices for a few scrap grades dropped amid shortage in several parts of India. The import of old cast/Tense and Old Sheet Taint/Tabor into India dropped as traders struggled with global vessels and container availability, in addition to the upswing in the-three-month aluminium contract on LME.
Manufacturers across India witnessed slowing of demand from the auto sector, though export orders from China kept pouring in. Market participants are optimistic that the domestic demand would return in February and March. Some manufacturers reported China revising the price of auto alloys to $2,020/mt cfr China port, up by $70/mt from prior week.
The weekly Davis Index for domestic EC wire Tuesday settled at Rs152,333/mt del Delhi consumer, down by Rs667/mt ($9.06/mt) and remained unchanged at Rs155,000/mt del Mumbai consumer.
The weekly Davis Index for the domestic old cast (Purja/Tense) Tuesday settled at Rs112,333/mt del Delhi consumer, up by Rs1,083/mt. Few traders reported trades at Rs113,000/mt for cleaner variation as manufacturers reported scarcity in the market. In Mumbai, the weekly Index for this grade settled unchanged at Rs112,000/mt del Mumbai consumer. Davis Index heard that traders are avoiding holding excess scrap as they expect price fluctuation soon.
The weekly Davis Index for domestic Taint/Tabor (old sheet) settled at Rs117,333/mt del Delhi consumer, down by Rs1,333/mt while in Mumbai, it settled at Rs118,833/mt del consumer, down by Rs1,167/mt.
The weekly Davis Index for aluminium utensil settled unchanged at Rs127,000/mt del Delhi consumer while in Mumbai, it was down by Rs1,000/mt to settle at Rs117,000/mt del consumer.
The three-month official contract of aluminium on LME rose by $35.5/mt to settle at $2,054/mt on Dec 14 from $2,018.5/mt on Dec 7.