News of China’s fourth import quota allowing aluminium scrap of a maximum volume of 100mt, announced on March 7, has failed to bring any cheer to Indian ADC 12 manufacturers exporting alloys to China.
Indian ADC12 manufacturers are currently in wait-and-watch mode, as Chinese manufacturers are offering lower rates in comparison with the prevalent ex-works producer rates in Delhi and Mumbai, assessed by Davis Index on Monday.
Manufacturers said that Chinese manufacturers are yet to revert on offers of $1,550/mt cfr China for the alloys.
The current rate being offered by Chinese counterparts is $1,500/mt cfr China, lower than the domestic rate by $50/mt, a manufacturer confirmed.
Manufacturers are reluctant to sign a deal with Chinese buyers at lower rates as demand for auto die-casting alloys is likely to pick up in northern and western India, particularly in the states of Maharashtra and Gujarat in April.
The weekly Davis Index for ADC 12 alloys settled at Rs115,500 ($1,557.27/mt) ex-works Delhi producer and Rs114,750/mt($1,546.49/mt) ex-works Mumbai producer Monday.
In its third batch of import quotas for aluminium scrap this quarter, China had allowed 1,440mt of aluminium scrap.
Chinese authorities permitted total 372,476mt of aluminium scrap into the country in the third quarter of 2019, which was the first-time import quotas were implemented.
In Jan-Dec 2019, India exported 64,707mt of aluminium alloys, up by 709.44pc from the same period prior year.
India exported 7,994mt of aluminium alloys in Jan-Dec 2018.
Of the total exports, India exported 12,347mt of aluminium alloys to China and 20,160mt to Korea.
($1=Rs74.2)