The Davis Index for ADC 12 settled at Rs114,500/mt ex-works Mumbaion Monday, down by Rs1,500/mt($19.72/mt) from Rs116,000/mt prior Monday.
Manufacturers in Mumbai and Diu- Daman witnessed a rise in demand for alloys from a major automaker in Western India as two-wheeler production has gained pace.
Die casters who signed monthly purchase contracts at higher prices in early June, rued their decision as they expect prices to drop further. If the trend continues, they could reap the benefits of this fall for July contracts. The weekly Davis Index ofLME6 settled at Rs139,000/mt ex-works Mumbai producer, up by Rs1,000/mt as domestic demand is on a path to recovery.
Chinese buyers this week have increased their bids for ADC 12 purchases from India. Davis Index heard trades of ADC 12 at $1,400- 1,410/mt cfr China on Monday, up by $35/mt from the week prior. Earlier, prices were on a decline after a Gujarat-based manufacturer agreed to sell ADC 12 at $1,365/mt cfr China.
The weekly index for ADC 12 settled at Rs114,750/mt ex-works Delhi producer, up by Rs2,750/mt($36.16/mt) from prior Monday. Davis Index heard offers of ADC 12 at Rs117,500/mt, but no buyers confirmed this rate. A major carmaker and ingot buyer in North India had refrained from announcing its ADC 12 purchase price for May and June.
But, alloy manufacturers in Delhi are hopeful of a recovery in demand next month after car production gathers momentum. Manufacturers in North India outside containment zones are currently operating at 40pc of their production capacity.