The weekly Davis Index for ADC 12 settled at Rs142,000/mt ex-works Delhi producer, up by Rs2,000/mt ($27.02/mt) on rising prices of raw material as importers struggled to secure scrap material from the US and European countries due to the limited availability of vessels and containers.
Market participants expect the prices for auto alloys to gain by Rs5,000/mt next month considering the current shortage of raw material in India in addition to the $25 surge in the price of the three-month contract of aluminium on LME which is now at $2,059.5/mt.
The weekly Davis Index for ADC 12 settled at Rs155,333/mt ($2,100.46/mt) ex-works Mumbai producer, up by Rs7,583/mt. Davis Index heard trades of ADC12 at Rs160,000/mt ex-Mumbai and Silvassa producer but not all manufacturers confirmed trades at these levels. Diecasters waiting to sign January contract with manufactures are hopeful that prices may drop on the last working day of December. Auto companies are planning to increase car prices from January onwards and experts believe this may affect the demand for cars that has shown considerable growth in the last two months.
ADC 12 producers in Western India reported having bought old cast/Tense at $1,500/mt cfr India, up by $53/mt from the prior Friday; and Zorba 95/2 at $1,588/mt cfr India, up by $10/mt. Manufacturers reported unavailability of raw material in many parts of India.
The weekly Index for LM6 settled at Rs170,667/mt ex-works Mumbai producer, up by Rs6,000/mt.
Manufacturers exporting ADC12 to China said that Chinese buyers revised offers to $2,150/mt up by $130/mt from $2,020/mt on prior Friday.
The secondary manufacturers witnessed slowing of domestic demand as compared to last two months. Manufacturers are optimistic that the demand for ADC 12 will pick up in February and March.
($1= Rs73.99)