Offers for most domestic aluminium scrap grades rose in Delhi and Mumbai led by the gains in three-month LME aluminium contracts over the last two days.
Market participants reported thin trades as manufacturers delayed purchases, awaiting demand revival in both domestic and export markets. Profit margins for secondary manufacturers have dropped drastically as scrap prices have shot up by 50pc from last year. Manufacturers are not keen on ramping production amid subdued demand. Some secondary manufacturers with large alloy inventories and are taking it slow before reverting to full-fledged production.
The Davis Index for old sheet in Delhi, Tuesday, settled at Rs142,750/mt del Delhi consumer, up by Rs2,250/mt ($30.19/mt). Few participants reported bids falling to Rs141,000- 142,000/mt levels, but most traders held their offers firm.
The Davis Index for EC wire settled at Rs183,000/mt del Delhi consumer, up by Rs500/mt($6.70/mt) from the prior week.
The weekly Davis Index for old cast (Purja) settled at Rs129,000/mt del Delhi consumer, gaining Rs2,500/mt from a week ago.
The Davis Index for aluminium utensils settled at Rs150,500/mt del Delhi consumer, up by Rs2,500/mt from prior Tuesday.
Trades are thin in Mumbai as manufacturers are witnessing weak demand from auto companies. Market participants stayed away from the market despite a rise in the three-month LME aluminium contract.
The Davis Index for EC wire stood at Rs193,000/mt del Mumbai consumer, up by Rs4,750/mt from the week prior amid a short supply of scrap. Trades remained thin as manufacturers are reluctant to purchase scrap at higher offers, which are in sync with international aluminium prices.
The official three-month LME contract settled at $2,468.5/mt on July 12, down $90/mt from $2,558.5/mt on July 5.
The Davis Index for Old cast (Purja) for Mumbai, Tuesday, settled Rs130,500/mt del Mumbai consumer, up by Rs3,500/mt from the preceding week and the index for old sheet in Mumbai settled at Rs147,500/mt del consumer on Tuesday, up by Rs1,500/mt.
The weekly index for Mumbai’s aluminium utensils, Tuesday, settled at Rs153,500/mt del Mumbai, up by Rs1,500/mt del Mumbai consumer.