The Davis Index for ADC 12 settled at Rs110,000/mt ex-works Delhi on Monday, down by Rs333/mt($4.45/mt) from Rs110,333/mt prior Monday. While weakness in demand from four-wheel manufacturers persists, allow makers in Northern India cite improved demand from two-wheeler manufacturers. A major two-wheeler manufacturer is also likely to announce its July ADC 12 purchase price in a week which could clarify the price direction for many suppliers. Meanwhile, alloy makers are also garnering hopes of a rise in demand from the commercial vehicles segment.
In the Kolkata market, Davis Index heard trades of ADC 12 at Rs107,000/mt ex-works.
The Davis Index for ADC 12 settled at Rs115,500/mt ex-works Mumbai on Monday, up by Rs500/mt ($6.69/mt) on the back of steady demand. A few trades of ADC 12 were also heard at Rs116,500/mt ex-works Mumbai on Monday from a prominent producer.
Manufacturers supplying ADC 12 to Bajaj Auto Plant in Waluj, near Aurangabad, shared the demand for alloys will remain temporarily subdued since the plant has had 250 positive COVID-19 cases. But in the near term demand will still improve once other downstream business ramp up operations.
Secondary alloy manufacturers in Delhi and in other parts of India preferred to rely on domestic demand amid trade uncertainty with China. Davis Index heard trades of ADC 12 at $1,420/mt cfr China. Manufacturers exporting alloys through traders continued their export after being assured of payment recovery from Chinese buyers.
The weekly Davis Index of LM6 settled at Rs137,625/mt ex-works Mumbai producer, down by Rs375/mt($5.02/mt) driven by subdued demand from the power sector.