Most domestic aluminium scrap grades rose on higher international prices despite low demand in the local markets. The Davis Index for EC wire stood at Rs175,450/mt del Mumbai consumer, up by Rs7,450/mt driven by a jump in LME aluminium contract. The official three-month LME contract jumped by $74/mt in a week to $2,342.5/mt on Monday.
In Maharashtra, demand has slumped to restriction and slow down in industrial activities. Auto company and small manufacturers are facing demand uncertainty as well as labour crunch due to the second wave of COVID-19. A ban on use of oxygen for non-essential industrial purpose has also hit some industries in the region.
The Davis Index for Old cast (Purja) for Mumbai on Tuesday settled at Rs128,950/mt del consumer, up by Rs950/mt from the preceding week, while the index for old sheet in Mumbai jumped by Rs7,450/mt to Rs137,450/mt del consumer on Tuesday.
The index for Mumbai’s aluminium utensils on Tuesday settled at Rs139,200/mt del Mumbai consumer, up by Rs1,200/mt in a week.
Domestic price offers were raised to be in parity with imported scrap prices which have risen on the back of LME aluminium’s climb. After April 12, the official three-month LME aluminium contract rose for three consecutive sessions and ended the week at $2,324.5/mt up $56/mt in a week which has pushed prices higher for imported scrap and domestic scrap.
Delhi
The Davis Index for old sheet in Delhi zoomed by Rs5,742/mt to Rs138,075/mt del consumer on Tuesday compared to the prior week.
The Davis Index for EC wire settled at Rs171,000/mt del consumer, up by Rs1,700/mt on Tuesday from a week back. Offers ranged between Rs172,000-175,000/mt del consumer.
Delhi market was nearly shut and trades were almost nil following the announcement of the lockdown. Most prices quoted by market participants for Delhi were last heard on Monday morning. Scrap yards are operating at 25pc capacity instead of 80pc capacity post the first wave of COVID. A lack of new orders from manufacturers and diecasters has impacted sales. Buyers are interested only in thin volumes to meet immediate requirements.
The Davis Index for old cast (Purja) settled at Rs133,950/mt del Delhi consumer, up by Rs1,950/mt from a week prior.
Offers in Delhi for aluminium utensils were heard between Rs142,000-145,000/mt del consumer. The Davis Index for aluminium utensils settled at Rs142,200/mt del Delhi consumer, up by Rs1,200/mt from prior Tuesday levels.
Market participants shared that the difference between 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.
($1=Rs74.89)