Offers for most domestic aluminum scrap grades dropped in Delhi and Mumbai, driven by a weakness in the three-month LME aluminum contract from the prior week. Trading was thin in Mumbai as manufacturers lowered bids following the drop in LME aluminum. Secondary manufacturers cited rising input costs as the scrap prices have shot up by 50pc since last year. Many have stockpiled alloy inventories and are taking it slow before resuming full-fledged production capacity.
The Davis Index for old sheet in Delhi settled at Rs140,000/mt del Delhi consumer Tuesday, up by Rs2,750/mt ($36.85/mt). Few participants reported bids of Rs139,000- 141,000/mt del consumer, traders were unwilling to lower offers.
The Davis Index for EC wire settled at Rs181,000/mt del Delhi consumer on Tuesday, up by Rs2,000/mt($26.80/mt) from the prior week.
The Davis Index for old cast (Purja) settled at Rs130,000/mt del Delhi consumer, up by Rs1,000/mt from the week prior.
The Davis Index for aluminum utensils settled at Rs149,000/mt del Delhi consumer from prior, up by Rs1,500/mt from prior Tuesday.
Deals were very few in Mumbai as manufacturers continued to face weak demand from auto companies despite a rise in alloy demand from Chinese buyers.
The Davis Index for EC wire stood at Rs191,500/mt del Mumbai consumer, down by Rs1,500/mt from the week prior as buyers lowered bids in sync with the recent changes in the three-month aluminum contract. Manufacturers were reluctant to purchase scrap at preset offer levels which are in sync with the global aluminum prices.
The official three-month LME contract settled at $2,446/mt on July 19 from $2,468.5/mt on July 12, down by $22/mt.
The Davis Index for Old cast (Purja) for Mumbai on Tuesday settled Rs129,250/mt del Mumbai consumer, up by Rs1,250/mt from the preceding week and the index for old sheet in Mumbai settled at Rs147,500/mt del consumer on Tuesday, down by Rs250/mt.
The index for Mumbai’s aluminum utensils on Tuesday settled unchanged at Rs153,500/mt del Mumbai consumer from the prior week.