The weekly Davis index for aluminium EC wire, Tuesday, settled unchanged at Rs125,000/mt del Delhi consumer and del Mumbai consumer. Market participants believe EC wire rates are likely to drop once Nalco decreases product prices in line with a drop in aluminium spot prices on the LME.
Two other primary aluminium producers Balco and Hindalco have already reduced their product prices on June 13 in with LME spot aluminium prices.
LME spot aluminium prices dropped by $22.5/mt to settle at $1,546/mt on Monday from last Monday.
No trades were reported in western and southern India on low or no demand.
The weekly Davis index for aluminium utensil scrap settled flat at Rs103,000/mt del Delhi and del Mumbai consumer as the market waits for Nalco to revise prices in line with the spot aluminium prices on LME. Utensil manufacturers in India also use primary metal as raw material. Thus, the prices of primary aluminium have an impact on this scrap grade. The percentage of a primary metal is more in utensils manufactured in the eastern parts of India.
The weekly Davis Index for domestic old cast (Purja/Tense) dropped by Rs1,750/mt ($22.98/mt) to Rs77,250/mt del Delhi. The weekly Davis Index for domestic old cast (Purja/Tense) dropped by Rs1,000/mt ($13.13/mt) del Mumbai consumer, both on weak demand. Traders in Gujarat, however, expect prices to go up once downstream production gains momentum.
The weekly Davis Index for domestic Taint/Tabor (old sheet) increased by Rs1,500/mt to settle at Rs92,500/mt del Delhi as demand from alloy manufacturers in Central India picked up. The weekly Davis Index for domestic Taint/Tabor (old sheet) settled unchanged at Rs91,000/mt del Mumbai consumer.