ADC 12 alloy prices settled unchanged in Delhi and Mumbai, while LM6 prices dipped in Mumbai on weak domestic demand and a drop in the three-month aluminium contract on LME.
Secondary manufacturers exporting auto alloys to China and Japan reported that enquiries from both the countries remained steady. However, buyers preferred to lower their bids driven by the weakness in LME aluminium contract.
Domestic demand in India for auto alloys continued to remain under pressure as lockdown was extended in several states. Many secondary units across India are struggling with shortage of workforce and are forced to cut production by up to 60pc. Fear of a further extension of the lockdown beyond May 30 is affecting business sentiment.
Prices for ADC 12 cfr China and cfr Japan were heard at $2,350/mt, down from $2,375/mt and $2,400/mt, respectively, from the preceding week.
The weekly Davis Index for ADC 12 in Delhi and Mumbai settled unchanged at Rs166,333/mt a d 175,500/mt ex-works, respectively. Domestic demand for auto alloys is weak.
The weekly Index for LM6 settled at Rs193,000/mt ex-works Mumbai producer, down by Rs625/m ($8.56/mt).
The three-month contract for aluminium dropped by $59.5/mt to settle at $2,403/mt on May 21 from $2,462.5/mt on May 14.