The weekly Davis Index for ADC 12 settled at Rs130,000/mt ex-works Delhi producer, up by Rs1,000/mt($13.49/mt) on the back of sustained demand for auto alloys from manufacturing units that resumed operations post-Diwali. Market participants expect the demand from auto manufacturers to last till year-end, unlike prior speculation that auto sales may drop after Diwali.
Davis Index also heard ADC 12 trades at Rs133,000/mt ex-works North India producer but not all participants confirmed trades at these rates.
In Mumbai, the weekly Davis Index for ADC 12 settled at Rs139,500/mt ex-works producer, up by Rs2,000/mt. Manufactures in Mumbai expect prices to go up further next month. Davis Index heard trades at Rs143,000/mt for the upcoming months, but not all manufacturers in Western India traded at these levels.
Die-casters near Mumbai have signed agreement to pay Rs139,000/mt for ADC 12 as per the price contract for November on 45-day payment terms. ADC 12 producers in Western India reported having bought old cast/Tense at $1,350/mt, up by $25/mt from $1,325/mt prior week.
The weekly Index for LM6 remained unchanged at Rs158,500/mt ex-works Mumbai producer, up by Rs3,500/mt.
Manufacturers exporting ADC12 to China said that Chinese buyers have revised offers to $1,800/mt, up by $25/mt from $1,775/mt cfr China from prior Friday. Manufacturers are optimistic that the ADC 12 trades with China will continue for next two months as the market awaits more clarity on scrap standards in China.
Manufacturers in Mumbai, however, showed no inclination of striking deals with China as domestic prices remain lucrative in the western part of India.
($1= Rs74.09)