The Davis Index for P1020 fell by Rs4,100/mt ($57.31/mt) on Monday to Rs142,588/mt ex-works India consumer, from Rs146,688/mt in the prior week.
Despite a healthy demand from aluminium extrusion makers, primary manufacturers dropped their prices as spot aluminium prices on the LME fell by $66/mt to $1,709/mt on Jan 31 from $1,775/mt on Jan 24. Both Balco and Hindalco reduced prices of P1020 by Rs4,000/mt to Rs141,750/mt and Rs141,250, respectively.
Demand for extrusion is up from original equipment manufacturers (OEM) who use it as their raw material. OEMs at present have ramped up production to complete their annual targets before the end of Mar 2020. The decline in primary aluminium prices along with increased demand has increased profit margins for extrusion makers. Extrusion manufacturers, however, expect prices of primary aluminium to go up in the near term.
In other domestic markets, the weekly index for CG99.5 fell by Rs5,352/mt to Rs141,038/mt ex-works Indian producer.
The index for ADC12 settled at Rs145,436 /mt, down by Rs5,850/mt from the prior week. The index for EC rod dropped by Rs6,383/mt and settled at Rs146,893/mt.
($1= Rs71.53)