Domestic prices for ADC 12 and LM6 slid in Mumbai due to slow demand for ADC 12 from China and Japan coupled with drop in prices of few scrap grades used as raw material by secondary manufacturers. However, prices gained in Delhi on the back of sustained demand from the auto plants in Northern India amidst continued scarcity of Tense and TT in this region.
The weekly Davis Index for ADC 12 settled at Rs150,750/mt, up by Rs750/mt ($10.23/mt) from Rs150,000/mt ex-works Delhi producer. Few producers sold ADC 12 at Rs152,000/mt but not all producers confirmed sales at these levels on the back of weak demand in few regions. Manufacturers struggled to secure old cast/Tense due to the limited availability of vessels and containers to import scrap.
The three-month contract for aluminium rose to $33.5/mt to $1,998.5/mt from $2,032/mt on Jan 8.
In Mumbai, the weekly index for ADC 12 settled at Rs163,500/mt, down by Rs3,333/mt from 166,833/m ex-works producer. ADC12 was also traded at Rs165,000/mt ex-works Mumbai but not all manufacturers confirmed trades at these levels. Die-casters have signed a contract to purchase ADC 12 at Rs166,000/mt for January. Die-casters were already expecting prices to drop in Jan considering the slow demand for auto alloys since October. ADC 12 producers in Western India reported trades for Zorba 95/2 at $1,631/mt cfr India on prior Friday, down by $69/mt from the prior week.
The weekly Index for LM6 settled at Rs174,000/mt ex-works Mumbai, down by Rs1,000/mt.
The secondary manufacturers witnessed the dip in domestic demand since the last two months but are hopeful that the demand for ADC 12 would rise in February.
Chinese bids for ADC 12 were at $2,150/mt, down by $25/mt from the prior week. Many manufacturers did not receive fresh offers from Japan, suggesting the drop in demand for ADC 12 in the island country.