The weekly Davis Index for ADC 12 gained by Rs750/mt ($10.10/mt) to settle at Rs178,500/mt ex-works Mumbai producer. ADC 12 prices are likely to be supported by a spike in silicon metal prices, a slight improvement in local demand and a rise in exports to China. The weekly index for ADC 12 settled unchanged at Rs173,000/mt ex-works Delhi producer.
ADC 12 prices are likely to trade in the upper bracket in the domestic market due to improvement in domestic demand and rising inquiries from China. In addition to this, market participants shared that silicon metal prices shot to $3,200/mt this week from $2,200/mt two weeks ago. The rise in silicon prices has increased the raw material cost for auto alloy makers who are already struggling with high freight prices for imported scrap material.
Secondary manufacturers exporting ADC alloys to China reported increased bookings for August and September deliveries, while deliveries to Japan struggled this week following cuts in auto output.
The weekly Index for LM6 settled at Rs207,167/mt ex-works Mumbai producer, up by Rs2,167/mt ($29.20/mt). Participants reported healthy demand from the domestic downstream industries.
The upbeat export market also strengthened prices in the domestic market, said smelters, who reported an improvement in bids from Chinese buyers.
The weekly Davis Index for ADC 12 settled at $2,375mt cfr China port, up by $12/mt from a week ago. The weekly Index for ADC 12 settled at $2,450/mt cfr Japan port, up by $37/mt.
Indian manufacturers offered $2,400/mt cfr China port while some bids were around $2,370-2,380/mt cfr China port levels.
($1= Rs74.20)