The weekly Davis Index for P1020 Monday climbed up by R4,400/mt ($57.85/mt) to settle at Rs137,088/mt ex-works India producer from Rs132,688/mt on June 8. Three India primary producers – Balco, Hindalco, Nalco revised their prices in line with the ups and down in LME spot aluminium prices. LME spot aluminium prices rose to $1,560/mt on June 12, up by $6.5/mt from $1,553.5/mt on June 5.
Early in the week on June 12, Balco and Hindalco had raised prices of aluminium products. But on June 13, they responded to the changes in LME spot aluminium prices and lowered their prices by Rs4,500/mt and Rs1,500/mt from June 12. Balco’s P1020 price dropped to Rs138,750/mt, down by Rs4,500/mt from Rs142,250/mt. Hindalco dropped P1020 price to Rs137,750/mt, down by Rs1,500/mt from Rs139,250/mt. Both the aluminium producers reduced product prices in line with the spot aluminium prices on LME. LME spot aluminium prices dropped by $22/mt to $1,560/mt on June 12 from June 11.
Nalco, state-owned aluminium producer, last revised product prices on June 11. Nalco’s P1020 prices rose to Rs141,950/mt on June 11, up by Rs4,900/mt from Rs137,050/mt on June 6. LME spot aluminium prices had increased by $60/mt to $1,613.5/mt on June 10 from $1,553.5/mt June 5.
Rising aluminium prices have escalated input costs for downstream manufacturers. Procurement for construction projects that were closed during the pandemic lockdown have restarted, but manufacturers are in a tight-spot as many of these contracts do not include a price escalation clause in relation with the rise in raw material costs.
Nalco’s price structure has bearing on the Indian downstream industries using primary aluminium as raw material. These industries are waiting for Nalco to revise product prices in line with the recent drop in LME spot aluminium prices.
The weekly Davis Index for ADC 12 settled at Rs140,636/mt, up by Rs4,675/mt from Rs135,961/mt ex-works India producer on prior Monday.
The index for CG99.5 settled at Rs136,676/mt, up by Rs4,455/mt from Rs132,221/mt ex-works India producer prior Monday. The index for EC rod settled at Rs142,926/mt, up by Rs4,450/mt from Rs138,476/mt ex-works India producer on prior Monday.