Domestic aluminium prices for scrap grades rose in Delhi and remained flat in Mumbai from the preceding week on account of Diwali break. The official three-month LME aluminium contract rose for the fourth straight session and on Monday settled at $1,946.5/mt, up by almost $16/mt from the week prior.
The weekly Davis Indexes for domestic EC wire Tuesday settled at Rs147,000/mt (1,973.90/mt) del Delhi consumer, up by Rs3,000/mt ($40.29/mt) driven by higher offers, but remained unchanged for the second consecutive week in Mumbai at Rs145,000/mt del consumer.
The weekly Davis Indexes for the domestic old cast (Purja/Tense) Tuesday settled at Rs104,800/mt del Delhi consumer, up by Rs800/mt. Prices of EC wire, utensil, and Taint/Tabor prices mirror LME amuminium prices.
In Mumbai, the weekly Davis Index for the domestic old cast (Purja/ Tense) settled flat at Rs103,000/mt del consumer, flat from the previous week. Participants in Mumbai said that market was silent Tuesday as most manufacturers are yet to return to work after the Diwali festivities.
The weekly Davis Index for domestic Taint/Tabor (old sheet) settled at Rs119,350/mt del Delhi consumer up by Rs6,600/mt. In Mumbai the index settled flat at Rs110,000/mt, del consumer on slow demand amid holidays. The weekly Davis Index for aluminium utensil Tuesday settled at Rs118,500/mt del Delhi consumer, up by Rs500/mt. In Mumbai, the weekly index settled at Rs110,000/mt del consumer, flat from the previous week.
Prices in Mumbai could rise in the coming week driven by the rise in LME and a hike in Delhi prices. Prices of primary aluminium products also rose on Nov 17. Demand from manufacturers could go up now once market in Mumbai opens completely after the Diwali break.
The demand for aluminium from auto sector is likely to rise in the coming months backed by India’s production linked incentive scheme.