The weekly Davis Index for ADC 12 in Delhi rose by Rs1,067/mt($14.82/mt) to settle at Rs116,667/mt ex-works on Monday. Large ADC 12 ingot buyers in northern India revised their purchase price to Rs119,000/mt from Rs112,500/mt a couple of weeks ago. Demand for the alloy from die-casters also increased as they look to ramp up auto components’ production.
The Davis Index for ADC 12 and LM6 in Mumbai was flat at Rs115,500/mt and Rs145,000/mt ex- works, respectively. Though prices of Tense scrap lowered from the prior week by $2/mt, increased silicon prices kept input cost of these alloys unchanged. Supply crunch had driven silicon prices upwards by Rs60,000/mt to 75,000/mt from last week of January.
Davis Index received unconfirmed reports that ships carrying silicon have left for Indian shores from China. Alloy makers now hope for easy availability of the metalloid in domestic markets which will enable them to resume exports.
In China, purchasers of ADC12 are bidding at $1,520/mt cfr China. But Indian alloy makers refrained from booking export orders, unwilling to sell below $1,590/mt cfr China levels. These producers hope once Chinese smelters resume full-fledged operations, prices will increase.