Offers for most of the domestic aluminum scrap grades increased in Delhi and Mumbai despite subdued demand from secondary alloy makers and slow alloy sales in export markets.
Secondary manufacturers have large stock-piled inventories and could step away from purchases until production levels stabilize. They remain hopeful for production capacity utilization and domestic demand is likely to recover by mid-July. Profit margins for secondary manufacturers have dropped significantly as scrap prices are 50pc higher compared to the prior year.
The weekly Davis Index for old sheet in Delhi settled at Rs140,250/mt del consumer on Tuesday, up by Rs2,500/mt ($33.66/mt). Few participants reported bids at Rs137,000 -Rs139,000/mt levels. The Davis Index for EC wire settled at Rs180,250/mt del consumer on Tuesday from a week ago, up by Rs1,250/mt.
The Davis Index for old cast (Purja) settled at Rs126,500/mt del Delhi consumer, up by Rs500/mt ($6.73/mt) from the week prior driven by the weak demand from the units exporting auto alloys to China and Korea. The Davis Index for aluminum utensils settled at Rs145,750/mt del Delhi consumer, down by Rs1,250/mt from prior Tuesday.
Trades were thin in Mumbai as traders were reluctant to lower prices. Manufacturers, on the other hand, waited for scrap prices to decline in sync with the drop in aluminum contract on LME.
The weekly Davis Index for EC wire stood at Rs185,000/mt del Mumbai consumer, up by Rs5,750/mt pressured by weak demand from secondary manufacturers due to labor unavailability and production cuts. The official three-month LME contract settled at $2,477.5/mt on June 28 up by $107/mt June 21.
The weekly Davis Index for Old cast (Purja) for Mumbai on Tuesday settled Rs125,500/mt del consumer, down by Rs1,250/mt and the index for old sheet in Mumbai settled at Rs144,000/mt del consumer on Tuesday, up by Rs3,250/mt.
The weekly index for Mumbai’s aluminum utensils on Tuesday settled at Rs147,000/mt del Mumbai consumer, up by Rs3,250/mt