Domestic aluminium prices for most scrap grades spiked due to shortage in several parts of India, despite the drop in the-three-month aluminium contract on LME.
The manufacturers across India are optimistic that the domestic demand would bounce back in February-March with hopes that export orders from China would continue for the next two months. Some manufacturers reported China having revised the price of auto alloys to $1,950/mt up from $1,920- 1,930/mt cfr China port in prior week.
The weekly Davis Indexes for domestic EC wire Tuesday rose by up by Rs3,000/mt ($40.77/mt) to settled at Rs153,000/mt del Delhi consumer and Rs155,000/mt del Mumbai consumer.
The weekly Davis Index for the domestic old cast (Purja/Tense) Tuesday settled at Rs112,250/mt del Delhi consumer, up by Rs583/mt. Few traders were reported trades at Rs116,000/mt for cleaner variation as manufacturers reported scarcity in the market.
In Mumbai, the weekly Davis Index for the domestic old cast (Purja/ Tense) remained unchanged at Rs112,000/mt del consumer. Davis Index heard that traders are holding on to the scrap inventories expecting a rise in prices for majority of the grades in the upcoming days.
The weekly Davis Indexes for domestic Taint/Tabor (old sheet) settled at Rs116,000/mt del Delhi consumer, down by Rs9,000/mt while in Mumbai it remained unchanged at Rs120000/mt del consumer.
The weekly Davis Indexes for aluminium utensils settled at Rs127,000/mt del Delhi consumer, down by 4,667/mt while in Mumbai, it settled at Rs118,000/mt del consumer, up by Rs2,000/mt
The three-month official contract of aluminium on LME dropped by $4/mt to settle at $2,018.5/mt on Dec 7.