Most domestic aluminium scrap grades settled flat to high on higher international prices, despite low demand in the local markets. Traders raised offers for a few grades in tandem with the increase in the three-month LME official aluminium contract.
The Davis Index for EC wire stood at Rs180,000/mt from Rs175,000/mt del Mumbai consumer, up by Rs5,000/mt($67.72/mt) in sync with the rise in the three-month official LME aluminium contract. Scrap prices rose despite low demand from secondary manufacturers due to the unavailability of workers and production cuts.
The official three-month LME contract jumped by $44.5/mt in a week to $2,438/mt on April 30 from $2,393.5/mt on April 26.
In Maharashtra, demand has slumped due to restrictions and a slowdown in industrial activities. Auto companies and small manufacturers are facing demand uncertainty as well as labour crunch due to the second wave of COVID-19.
The Davis Index for Old cast (Purja) for Mumbai on Tuesday settled unchanged at Rs135,000/mt del consumer from the preceding week on the subdued demand from secondary manufacturers. The index for old sheet in Mumbai jumped by Rs1,550/mt to Rs140,500/mt from Rs139,000/mt del consumer on Tuesday.
The index for Mumbai’s aluminium utensils on Tuesday settled at Rs149,000/mt from Rs147,000/mt del Mumbai consumer prior week, up by Rs2,000/mt in a week on the back of the jump in the official three-month LME contract.
The Davis Index for the old sheet in Delhi settled unchanged at Rs138,500/mt del consumer on Tuesday from the prior week, while EC wire settled at Rs176,000/mt from Rs174,000/mt del consumer, up by Rs2,000/mt.
Market participants shared that trades were almost nil following the extension of the lockdown. Most prices quoted by market participants for Delhi were last heard on Monday morning. Scrap yards are operating at 25pc capacity instead of 80pc capacity post the first wave of COVID. A lack of new orders from manufacturers has impacted sales. Buyers are interested only in thin volumes to meet immediate requirements.
The Davis Index for the old cast (Purja) settled at Rs134,000/mt from Rs133,500/mt del Delhi consumer, up by Rs500/mt from a week prior driven by the weak demand from secondary manufacturers.
The Davis Index for aluminium utensils settled at Rs144,000/mt from Rs143,000/mt del Delhi consumer, up by Rs1,000/mt from prior Tuesday levels.