ADC 12 and LM6 alloy prices advanced in Delhi and Mumbai, supported by rise in imported aluminium scrap prices due to the rise in the three-month aluminium contract on LME.
However, domestic and export demand for alloys remain under pressure. China and Japan stayed away from importing the alloy as auto production in most countries has dipped amid a shortage of semiconductor chips.
Domestic demand has been hit due to the lockdowns imposed by state governments to curb the COVID-19 menace. Many secondary units across India are struggling with labour shortage and are forced to cut production by up to 60pc.
The weekly Davis Index for ADC 12 settled at $2,200/mt cfr China, up by $7/mt from last Monday. The weekly Index for ADC 12 cfr Japan settled flat at $2,250/mt from the preceding week as Japanese buyers stayed away from bidding since auto production in the country has been hit.
In Delhi, the weekly Index for ADC 12 settled at Rs165,000/mt, up by Rs4,500/mt ($60.22/mt) ex-works producer. In Mumbai, the weekly Index for ADC 12 settled at Rs172,125/mt ex-works Mumbai producer, up by Rs4,458/mt ($59.64/mt). Participants in Mumbai reported subdued domestic demand for auto alloys and absence of orders from Japan.
The weekly Index for LM6 settled at Rs186,000/mt from Rs182,000/mt ex-works Mumbai producer, up by Rs4,000/mt.
The three-month LME contract for aluminium rose by $54/mt to settle at $2,378.5/mt on April 23, from $2,324.5/mt on April 16.
($1= Rs74.74)