The weekly Davis Index for ADC 12 Monday declined by Rs2,750/mt to Rs109,250/mt ex-works Delhi on lack of demand from auto manufacturers and the absence of liquidity in the markets. Davis Index heard offers at Rs106,000 -108,000/mt ex-Kolkata producer as alloy makers offered cash discounts. Many downstream industries are refusing to clear long pending dues citing a lack of liquidity due to the COVID-19 induced slowdown.
The weekly Davis Index for ADC 12 remained unchanged at Rs118,000 ex-works Mumbai from the prior week while the index for LM6 settled at Rs138,500/mt ex-works Mumbai, up by Rs500/mt from May 11. Prices moved last week as the government allowed secondary alloy makers to resume production with 35pc workforce.
Aluminium manufacturers located outside the containment zone said they can restart operations but lack of demand from downstream industries is forcing them to slow down. Die-casters exporting auto parts have resumed purchase of ADC 12 and LM6 and other special alloys. However, die-casters with confirmed export orders are few and far in between.
Manufacturers shied away from new imported scrap booking as they have inventories either at premises or at the ports. In the absence of local demand, manufacturers are relying on the exporting ADC 12 to China even at lower rates. Davis Index heard trades at $1,380 -1,400/mt cif China, unchanged from last two weeks.