The weekly Davis Index for ADC 12 settled at Rs118,000/mt ex-works Mumbai, down by Rs2,500/mt on sluggish demand in domestic downstream industries. The weekly Davis Index of LM6 settled at Rs138,000/mt ex-works Mumbai, down by Rs8,000/mt. Till last week, prices had remained flat amid COVID-19 lockdown.
The weekly index for ADC 12 in Delhi remained flat at Rs112,000/mt ex-works. A few alloy manufacturers have commenced production at 25-30pc of their capacity. Before booking imported scrap, these manufacturers are utilising scrap inventories at hand.
Alloy prices are likely to change in the next few days after manufacturers begin dispatches. Producers believe there will be an uptick in the demand for secondary alloys in North India after downstream industries resume production.
As domestic demand remains halted,, manufacturers are distressed to export ADC 12 to China at lower rates. Davis Index heard trades at $1,580 -1,600/mt cfr China. Alloymakers are hoping to renegotiate rates with China once domestic demand revives.
Die-casters are likely to be in the market for secondary alloys next month. At present, they are completing post foundry operations with existing raw material. Both, alloy manufacturers and die-casters continued to face labour shortage as migrant workers continued returning to their hometowns.