In absence of new bids from China and with very few bids from Japan, the domestic prices for ADC 12 and LME6 cooled off in Delhi and Mumbai. Manufacturers in the North having existing orders from diecasters who continued to sell ADC 12 at higher price than others, are struggling to secure new orders amidst weakening of domestic demand.
The weekly Davis Index for ADC 12 settled at Rs150,667/mt ex-works Delhi producer, down by Rs83/mt ($1.14/mt). A few producers sold ADC 12 at Rs152,000/mt but not all producers confirmed sales at this level. Manufacturers lowered the price for old cast/Tense in the domestic market to Rs116,000/mt from Rs119,000/mt a week ago.
The three-month contract for aluminium dropped to $22.5/mt to $1,976/mt on Jan 22 from $1,998.5/mt a week ago.
In Mumbai, the weekly Davis Index for ADC 12 settled at Rs161,100/mt ex-works producer, down by Rs2,500/mt. Trades were reported at Rs165,000/mt ex-works Mumbai as well, but not all manufacturers confirmed trades at this level. Diecasters are expected to sign a contract to purchase ADC 12 at Rs162,000/mt in Feb 2021, down from Rs166,000/mt in January.
The weekly Index for LM6 settled at Rs173,667/mt ex-works Mumbai producer, down by Rs333/mt.
Secondary manufacturers are optimistic that demand for ADC 12 will rise in February.