The weekly Davis Index for ADC 12 settled at Rs128,833/mt ex-works Delhi producer, up by Rs1,993/mt($25.96/mt) on sustained demand from auto manufacturers which market participants expect to continue till end of the year contrary to prior speculation that auto sales may drop post-Diwali season.
Davis Index also heard ADC 12 trades at Rs131,000/mt ex-works North India producer but not all participants confirmed trades at these rates.
In Mumbai, the weekly Index for ADC 12 settled at Rs137,833/mt ex-works producer, up by Rs868/mt. Diecasters near Mumbai signed agreements to pay Rs139,000/mt for ADC 12 as per the price contract for November on a 45-day payment term. ADC 12 producers in Western India reported having bought old cast/Tense at $1,280/mt, up by $13/mt from the prior week.
The weekly Index for LM6 settled at Rs153,667/mt ex-works Mumbai producer, down by Rs2,293/mt. Some producers in Mumbai dropped prices of LM6 due to weak demand.
Manufacturers exporting ADC12 to China said that Chinese buyers revised the prices by $15/mt to $1,740/mt cfr China on Monday after lowering it to $1,725/mt over the weekend in line with LME and lack of clarity on standard of scrap that will be allowed to enter China from Nov 1.
The manufacturers are optimistic that ADC 12 trades with China will continue to be unaffected over next two months as the market awaits more clarity on scrap standards in China. China had recently allowed imports of aluminium, copper and brass scrap meeting high standards from Nov 1.
($1= Rs74.44)