The weekly Davis Index for ADC 12 settled at Rs149,500/mt ex-works Delhi producer, up by Rs4,667/mt($63.92/mt) on rising prices of raw material as importers struggled to secure scrap from the US and European countries due to limited availability of vessels and containers.
The three-month LME contract for aluminium dropped to $1,980.5/mt on Dec 31, down by $45/mt from Dec 24.
The weekly Davis Index for ADC 12 settled at Rs158,833/mt ex-works Mumbai producer, down by Rs7,834/mt. Davis Index heard trades of ADC12 at Rs166,000/mt ex-Mumbai but not all manufacturers confirmed trades at these levels.
Die-casters signed a contract to purchase ADC 12 at Rs166,000/mt for January. Die-casters were hopeful that prices will come off from Dec considering slow demand for auto alloys compared to October and November. However, prices remained upbeat while few producers having production capacity to produce 500mt per month have reduced prices to Rs154,000-155,000/mt.
Auto companies are planning to increase car prices from Jan onwards, but experts note this may affect the demand for cars which has grow in the last two months.
ADC 12 producers in Western India reported offers for old cast/Tense at $1,500/mt cfr India, up from $1,492/mt on prior Friday and Zorba 95/2 at $1,650/mt cfr India, down by $10/mt. Manufacturers in Northern India reported no offers since past few days due to New Year holiday.
The weekly Index for LM6 settled at Rs172,667/mt down by Rs2,333/mt from Rs175,000/mt ex-works Mumbai producer. The secondary manufacturers witnessed the domestic demand slowing down as compared to the two prior months. Manufacturers are optimistic that demand for ADC 12 will pick up in February and March again.