ADC 12 and LM6 alloy prices advanced in Delhi and Mumbai supported by the rise in imported aluminium scrap prices on the back of rise in the three-month aluminium contract on LME.
However, domestic and export demand for alloys remains under pressure. Japan largely stayed away from importing the alloy as auto production in most countries has dipped amid a shortage of semiconductor chips.
Domestic demand has been hit amid COVID-19 related lockdowns in major parts of the country.
Many secondary units across India are struggling as their workforce has migrated back to their hometowns, forcing units to cut production by up to 60pc.
In Delhi, the weekly Davis Index for ADC 12 settled at Rs166,250/mt, up by Rs1,250/mt ($16.91/mt) ex-works producer while in Mumbai, the index for the grade rose by Rs3,375/mt ($45.67/mt) to Rs175,500/mt from Rs172,125/mt ex-works producer.
Demand in Mumbai was subdued and while export orders from Japan have dried up.
The weekly index for LM6 settled at Rs193,500/mt from Rs186,000/mt ex-works Mumbai producer the prior week, up by Rs7,500/mt.
The three-month contract for aluminium rose by $59.5/mt to settle at $2,438/mt on April 30, from $2,378.5/mt on April 23.