The weekly Davis Index for ADC 12 remained unchanged at Rs116,000/mt ex-works Mumbai on Monday amid sluggish demand from downstream industries. Die-casters who have signed a month-long contract for June with ADC 12 suppliers at higher are likely to lose out from the benefits of price decline earlier this month.
The weekly Davis Index for LM6 also settled unchanged at Rs138,000/mt ex-works Mumbai producer from the prior week. Davis Index heard trades of LM6 at Rs140,000/mt ex-works Kolkata producer this week.
Amid a drop in domestic demand, manufacturers were relying on exports of ADC 12 to China to keep their wheels running. Chinese buyers, however, have reduced their prices which is likely to impact these exporters. The weekly Davis Index for ADC 12 settled at $1,340/mt cfr China on Friday, down by $52/mt from the prior week. But Davis Index heard trades for the alloy at $1,365/mt cfr China on Monday. A few alloy manufacturers have already backed out from exporting at prices below $1,400/mt citing a margin squeeze.
The weekly index for ADC 12 in Delhi settled unchanged at Rs112,000/mt ex-works due to persisting weak domestic demand from auto manufacturers.