The weekly Davis Index for ADC 12 in Delhi fell by Rs3,500/mt ($47.15/mt) to settle at Rs112,000/mt.
Demand from die-casters in NCR and Faridabad regions was sluggish which pressured ADC 12 prices. Downstream producers have reduced purchases ahead of the financial year-end on March 31.
Currently, the rising number of COVID-19 cases has a limited impact on the secondary aluminium alloy market. A producer in north India confirmed plants are running at their usual capacity at present. Alloy makers feel negative sentiment is likely to spread if the outbreak is not controlled within a month.
The weekly Davis Index for ADC 12 in Mumbai rose by Rs5,750 ($77.47/mt) to Rs120,500/mt ex-works, as demand for secondary alloys picked up in Maharashtra and Gujarat. A Local producer confirmed to have sold ADC 12 at Rs123,000/mt ex-works, but no other producer in Mumbai confirmed this rate.
The weekly Davis Index for LM6 in Mumbai rose by Rs3,250/mt to Rs146,000/mt. Prices for LM6 rose as downstream producers signed new monthly contracts at an increased price from Rs142,000/mt in the prior month.
A decrease in silicon prices, an important raw material used by alloy makers, has failed to pull down ADC12 and LM6 prices in Mumbai. Silicon prices dropped to Rs150,000/mt from Rs180,000/mt a month ago.
Export offers by Indian producers for ADC 12 are at $1,550/mt cfr China, with no response from buyers yet.