The weekly Davis Index for ADC 12 settled at Rs120,500/mt ex-works Delhi producer on Monday up by Rs1,750/mt ($23.58/mt) from the prior week driven by the rise in prices of imported scrap material in addition to pent-up demand for auto alloy manufacturers in India.
Alloy manufacturers reported that due to paucity of raw material in the market, the prices will continue to rise for the next two weeks. A major auto producer in North India has not declared its ADC 12 purchase price but is paying Rs124,000/mt to the suppliers. The manufacturers said that the usual difference between the prices offered by this auto producer and the domestic prices in New Delhi has dropped to just Rs3,000-4,000/mt from Rs8,000-9,000/mt driven by the tight supply of ADC 12 in this region.
The Davis Index for ADC 12 settled at Rs126,000/mt ex-works Mumbai producer, up by Rs3,833/mt from the prior week, due to shortage of imported scrap. Davis Index heard domestic prices of old cast climb to Rs95,000/mt from Rs90,000/mt two weeks ago.
The Weekly Index for LM6 settled at Rs147,000/mt ex-works Mumbai producer, up by Rs3,000/mt from the prior week on the sustained demand for the alloy in the power sector.
Manufacturers shared that they are not ready to export ADC 12 below $1,600/mt cfr China, as domestic demand continues to remain upbeat. Traders shared that Chinese buyers are reluctant to offer beyond $1,530/mt cfr China to Indian suppliers.
($1= Rs74.19)