Offers for most domestic aluminium scrap grades marginally rose in Delhi but dropped in Mumbai as some markets resumed work on Monday after a month-long lockdown. Scrap prices are expected to stabilize by the next week after secondary manufactures resume production at full capacity.
Delhi
The weekly Davis Index for old sheet in Delhi settled unchanged at Rs146,000/mt delivered consumer on Tuesday. Bids were at Rs140,000-144,000/mt levels, but not all traders were willing to lower offers.
The weekly Davis Index for EC wire settled at Rs182,000/mt delivered consumer from Rs181,000/mt, up by Rs1,000/mt ($13.71/mt). Trading has gradually picked up pace as Delhi government allowed reopening of all establishments for the limited hours from Monday.
The secondary manufacturers reported elevated offers for old cast (Purja) and added that prices may rise on the back of the scarcity of scrap.
The weekly Davis Index for old cast (Purja) settled at Rs137,667/mt del Delhi consumer driven by the slight improvement in demand from units exporting auto alloys to China and Korea.
The Davis Index for aluminium utensils settled at Rs149,333/mt del Delhi consumer, down by Rs667/mt.
Mumbai
The weekly Davis Index for EC wire stood at Rs180,400/mt del Mumbai consumer, down by Rs4,600/mt due to volatility in the LME three-month price and weak demand from secondary manufacturers production cuts and unavailability of workforce.
The official three-month LME aluminium contract settled at $2,418.5/mt on June 7 from $2,434/mt on May 28, down by $18.5/mt.
In Maharashtra, establishments reopened from June 7 for limited working hours. Auto companies and small manufacturers having confirmed export orders continued their production while units relying on domestic downstream industries are slowly resuming production.
The weekly index for Old cast (Purja) for Mumbai on Tuesday settled Rs133,500/mt del consumer, down by Rs2,500/mt and the index for the old sheet in Mumbai settled unchanged at Rs142,000/mt del consumer.
The index for Mumbai’s aluminium utensils on Tuesday settled at Rs148,000/mt from Rs150,000/mt, down by Rs2,000/mt del Mumbai consumer.
($1=Rs72.89)