The weekly Davis Index for ADC 12 settled at Rs114,333/mt ex-works Delhi producer on Monday, up by Rs1,333/mt($17.73/mt) , driven by rising demand from auto manufacturers in India. Market participants reported a spike in demand from two-wheeler and four-wheeler manufacturers across India.
A major auto manufacturer in the North had announced its purchase price for ADC 12 at Rs120,000/mt for July, but alloy manufacturers shared that prices in August are likely to go up. Davis Index heard trades of ADC 12 at Rs115,000/mt ex-works NCR consumer, but the producers in North India did not confirm trades at this level.
The Davis Index for ADC 12 settled at Rs118,333/mt ex-works Mumbai producer on Monday, up by Rs1,458/mt from the prior week, driven by the acute shortage of Tense. Tense prices surged to Rs85,000/mt in the domestic market driven by the rising purchases by alloy makers as auto manufacturing plants across India ramped up production to fulfil demand for two-wheelers.Alloy makers are expecting secondary alloys to go up.
The weekly Davis Index for LM6 settled at Rs142,000/mt, up by Rs1,750/mt($/mt) ex-works Mumbai producer on sustained demand from the power sector.
Alloy manufacturers have curbed exports to China after their Chinese counterparts refused to revise ADC 12 import rates from $1,450-1,460/mt level. Manufacturers said they are reluctant to export at lower rates knowing that domestic demand is on an upswing.