ADC 12 alloy prices dipped in Delhi and in Mumbai on muted domestic and international demand despite a jump in the LME three-month aluminium contract compared to the prior week.
Secondary aluminium alloy manufacturers exporting auto alloys to China reported very few inquiries. Japanese buyers, however, were active in the market. Domestic demand for auto alloys continued to remain weak. Secondary units continued to face production challenges amid labour shortages which has resulted in lower capacity utilization.
The Davis Indexes for ADC 12 settled at $2,275/mt cfr China port, down by $70/mt and at $2,363/mt cfr Japan port, up by $13/mt from the prior week.
The weekly Davis Index for ADC 12 on Monday settled at Rs169,000/mt ex-works Delhi producer, down by Rs1,000/mt ($13.65/mt). The weekly Davis Index for ADC 12 settled at Rs169,333/mt ex-works Mumbai producer, down by Rs3,917/mt from the prior week.
Participants in Mumbai reported low domestic demand for auto alloys and some even lowered offers to boost trading. Several businesses in the MSME’s sector are facing excessive financial losses and are determined to sell off inventories. Few Die casters that export auto components have signed a contract to purchase ADC 12 at Rs172,000/mt for the month of June. Die Casters claimed that exports of auto components to Europe and the US have continued.
The weekly Index for LM6 settled at Rs191,000/mt ex-works Mumbai producer, down by Rs1,500/mt. Secondary manufacturers are reluctant to lower offers further despite downstream buyers bidding at lower levels.
The three-month contract for LME aluminium settled at $2,477.5/mt on May 11, up by $51/mt from May 4.