As secondary aluminium alloys manufacturers are yet to hear new bids from China and Japan due to the Lunar New Year celebrations, coupled with the weak demand in those countries, the domestic prices for ADC 12 and LME6 also slid ex-Delhi and Mumbai producer.
The weekly Davis Index for ADC 12 dropped to Rs146,000/mt ex-works Delhi producer by Rs4,667/mt ($63.88/mt) from prior Monday because of weak demand in few regions. Few producers sold ADC 12 at Rs148,000/mt but not all producers confirmed sales around these levels.
The manufacturers are hopeful that prices may go up after a major auto producer in North India declares the purchase price for ADC 12. The auto producer last announced the purchase price for auto alloys at Rs144,000/mt in Nov 2020.
Traders decided to hold off import of scrap as they expect prices of Tense, Zorba to reduce due to the weakening of demand in China.
The three-month contract for aluminium rose by $11.5/mt to settle at $1,987.5/mt on Jan 29 from $1,976/mt on Jan 22.
In Mumbai, the weekly Davis Index for ADC 12 settled at Rs157,000/mt ex-works Mumbai producer, down by Rs4,000/mt. Trading of ADC12 was reported around Rs160,000/mt ex-works Mumbai, but not all manufacturers confirmed trades at this price. Diecasters signed a contract to purchase ADC 12 at Rs156,000/mt in February 2021, down from Rs162,000/mt in January. Diecasters exporting auto parts to Europe and the US witnessed weakening of demand due to lockdowns caused by the fresh wave of COVID-19 infection.
The weekly Index for LM6 settled at Rs168,000/mt from Rs173,667/mt ex-works Mumbai producer, down by Rs5,667/mt.