Most domestic aluminium scrap prices remained unchanged on Tuesday, while EC wire and Old Cast (Purja) prices in Mumbai advanced despite a $98/mt slide in the three-month LME official aluminium contract.
The weekly Davis Index for EC wire stood at Rs196,000/mt del Mumbai consumer, up by Rs1,000/mt ($13.69/mt) on the back of the drop in LME three-month price despite low demand from secondary manufacturers due to labourers’ unavailability and production cuts. Participants reported a severe shortage of cleaner scrap material.
The official three-month LME contract dropped by $98/mt in a week to $2,479/mt May 17 from $2,577/mt on May 10.
In Maharashtra, demand has dropped due to restrictions and a slowdown in industrial activities. Auto companies and small manufacturers are facing demand uncertainty as well as labourer crunch due to the second wave of COVID-19.
The weekly Davis Index for Old cast (Purja) for Mumbai on Tuesday settled at Rs139,000/mt from Rs137,000/mt del consumer on the shortage of scrap amidst weak demand from the secondary manufacturers. The weekly index for old sheet in Mumbai settled unchanged at Rs149,000/mt del consumer on Tuesday.
The index for aluminium utensils on Tuesday settled unchanged at Rs154,000/mt del Mumbai consumer prior week on the back of the drop in the official three-month LME contract.
The weekly Davis Index for old sheet and EC wire in Delhi settled unchanged at Rs147,000/mt and Rs182,000/mt, respectively on Tuesday.
Market participants shared that trades were thin following the announcement of the lockdown. Most prices quoted by market participants for Delhi were last heard on Monday morning. Buyers are interested only in thin volumes to meet immediate requirements.
The weekly Davis Indexes for old cast (Purja) and aluminium utensils settled unchanged at Rs136,000/mt and Rs149,500/mt del Delhi consumer, respectively.