The weekly Davis Index for ADC 12 gained by Rs5,833/mt ($79.60/mt) to settle at Rs184,333/mt ex-works Mumbai producer. Domestic 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 and Japan.
The weekly index for ADC 12 settled at Rs180,000/mt ex-works Delhi producer, Rs7,000/mt.
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 and Japan. 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 alloymakers, who continue to struggle with high freight prices for imported scrap.
Secondary manufacturers exporting ADC alloys to China and Japan reported increased bookings for September shipments.
The weekly Index for LM6 settled at Rs215,333/mt ex-works Mumbai producer, up by Rs8,166/mt ($111.45/mt). Participants reported healthy demand from local downstream industries.
The upbeat export market also supported 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 $2,450-2,480/mt from $2,375mt cfr China port, up by $75-110/mt from a week ago. The weekly Index for ADC 12 settled at $2,520/mt cfr Japan port, up by $70/mt.
($1= Rs73.26)