Offers for ADC 12 ex-works Delhi and Mumbai producers were unchanged from the prior week on subdued domestic demand and slow exports to China and Japan.
The weekly Davis Indexes for ADC 12 settled unchanged at Rs171,333/mt ex-works Mumbai producer and Rs165,000/mt ex-works Delhi producer. Although production activity has resumed, sales are still under pressure in both markets.
Die casters signed a monthly contract with manufacturers for ADC 12 purchases at Rs170,000/mt for July, down from Rs172,500/mt in the prior month. Few secondary manufacturers confirmed trades at Rs172,000/mt.
Imported scrap prices showed marginal changes despite a $46.5/mt drop in the three-month aluminium contract on LME. The weekly Davis Index for Zorba 95/2 on Friday settled at $1,618/mt cfr India port, up by $18/mt from the prior week. The index for Taint/Tabor was up by $29/mt to settle at $1,739/mt cfr India port, and the index for Tense settled at $1,698/mt cfr India port, up by $28/mt from a week ago.
The three-month aluminium contract on LME settled at $2,488.5/mt on July 9 from $2,535/mt on July 2.
The weekly Davis Indexes for ADC 12 settled at $2,270/mt cfr China on July 9, up by $60/mt and at $2,300/mt cfr Japan, unchanged. Few manufacturers failed to secure bids at $2,270/mt cfr China port and claimed that bids by Chinese buyers were below $2,170/mt cfr China port levels. Deals at these levels are non-workable, say, manufacturers. Firm freight rates on India-China and India-Japan routes also kept North Indian manufacturers away from these price levels. Few participants claimed that freight rates have spiked to $800/mt from $200/mt two months ago.
The weekly index for LM6 settled at Rs193,500/mt ex-works Mumbai producer, up by Rs2,250/mt($30.15/mt). A subdued demand in the power sector due to the ongoing monsoon season kept demand for the alloy weak.