The ADC 12 alloy prices dropped in Mumbai driven by subdued domestic and international demand in addition to the instability in the three-month aluminium contract on LME. Prices in Delhi, however, rose weekly.
The secondary manufacturers exporting auto alloys to China and Japan reported slow inquiries. Domestic demand for auto alloys continued to remain under pressure as secondary units are facing challenges amidst restrictions under a lockdown. Many secondary units across India reported labour shortagea and hence partial production.
The prices for ADC 12 settled at $2,345/mt cfr China and $2,350/mt cfr Japan unchanged from the prior week.
The weekly Davis Index for ADC 12 settled at Rs170,000/mt ex-works Delhi producer, up by Rs3,667/mt ($50.35). The weekly Davis Index for ADC 12 settled at Rs173,250/mt ex-works Mumbai producer, down by Rs2,250/mt from the prior week. Participants in Mumbai reported low domestic demand for auto alloys.
Few die casters exporting auto components signed a contract to purchase ADC 12 at Rs172,000/mt for the month of June. Die casters claimed that demand for auto components from the European countries and the US continues to grow.
The weekly Index for LM6 settled at Rs192,500/mt ex-works Mumbai producer, down by Rs500/mt from the prior week. Secondary manufacturers are reluctant to revise offers as downstream industries continue to bid at lower levels.
The three-month contract for Aluminium settled at $2,426.5/mt on June 4 from $2,434/mt on May 28, down by $7.5/mt.