The weekly Davis for ADC 12 settled at Rs116,000/mt ex-works Mumbai on Monday, down by Rs2,778/mt($36.73/mt). Die-casters who have signed a month-long contract for June are likely to lose this price reduction benefit. Producers continue to struggle with sluggish alloy demand in the domestic market.
The weekly Davis Index of LM6 settled at Rs138,000/mt ex-works Mumbai producer, down by Rs889/mt on Monday. Davis Index heard trades of LM6 at Rs142,000/mt delivered to the downstream industry last week.
Manufacturers are at present relying on ADC 12 exports China. But Chinese buyers have slashed their bids to $1,360-80/mt from $1,400- 1,415/mt cfr China two weeks ago. A few alloy manufacturers have thus backed out from trades at those levels and now await domestic demand revival.
The weekly index for ADC 12 in Delhi settled unchanged at Rs112,000/mt ex- works. Trades remain thin as auto manufactures are struggling to resume production at full capacity. Additionally, a major auto manufacturer in North India is yet to declare ADC 12 purchase prices for June.
Manufacturers believe there will be some clarity on the price direction by next week.