Most domestic aluminium scrap grades settled high on global cues, weak imports, and low demand in the local markets. Traders raised offers for a few in tandem with the gain in the three-month LME official aluminium contract.
The weekly Davis Index for EC wire stood at Rs195,000/mt from Rs180,000/mt del Mumbai consumer, up by Rs15,000/mt ($204.45/mt) on the back rise in LME three-month price, despite low demand from secondary manufacturers due to labor unavailability and production cuts. Participants reported severe shortage of clean scrap material.
The official three-month LME aluminum contract jumped by $139/mt in a week to $2,577/mt on May 10 from $2,438/mt on April 30.
In the state of Maharashtra, demand has dropped due to restrictions and a slowdown in industrial activities. Auto companies and small manufacturers are facing demand uncertainty. Majority of the labourers have left for their hometowns as lockdown affected work.
The weekly Davis Index for Old cast (Purja) for Mumbai on Tuesday settled at Rs137,000/mt del consumer due to shortage of scrap amidst weak demand from the secondary manufacturers. The weekly index for old sheet in Mumbai jumped by Rs8,500/mt to Rs149,000/mt del consumer on Tuesday.
The weekly index for aluminium utensils in Mumbai settled at Rs154,000/mt del consumer, up by Rs5,000/mt in a week due to the jump in official three-month LME contract.
The weekly Davis Index for old sheet in Delhi settled at Rs147,000/mt del consumer, up by Rs8,500/mt on Tuesday.
The weekly Index for EC wire settled at Rs182,000/mt del consumer, up by Rs6,000/mt.
Trading activities have been silent since. lockdown was imposed. Most prices quoted by market participants for Delhi were last heard on Monday morning. Buyers are interested only in thin volumes to meet immediate requirements.
The weekly Davis Index for the old cast (Purja) settled at Rs136,000/mt del Delhi consumer, up by Rs2000/mt driven by weak demand from secondary manufacturers. Purja prices are expected to gain once production resumes as traders reported shortage of cleaner Purja in Delhi markets. Imports have been slow due to the recent spike in LME aluminium.
The weekly Davis Index for aluminium utensils settled at Rs149,500/mt del Delhi consumer, up by Rs5,500/mt.