The weekly Davis Index for LM6 in Mumbai rose by Rs4,000/mt($56.02/mt) to settle at Rs145,000/mt ex-works on Monday. Alloy manufacturers in Mumbai sold LM6 at Rs148,000/mt.
Prices increased fuelled by a rise in input cost, particularly Silicon which is used as a raw material to strengthen the alloy. India imports silicon from China. After the Chinese shutdown due to the coronavirus outbreak, supply of the metalloid tightened in the domestic market. Silicon prices rose by Rs30,000/mt to Rs200,000/mt in a week’s time.
Silicon crunch is likely to persist till mid-March at the minimum, as Chinese traders are still unable to dispatch shipments. Indian traders explored the possibility of import from Russia but were unable to do so as prices were unviable.
The index for ADC12 ex-works Mumbai producer rose by Rs2,250/mt to Rs115,500/mt from the week prior.
The weekly index for ADC 12 ex-works Delhi producer rose by Rs667/mt ($/mt) to Rs115,000/mt ex-works Delhi Monday.
ADC12 prices, too, were largely driven by the rise in silicon prices, despite a decline in aluminium scrap prices.
The weekly Davis Index for Indian imports of Tense scrap dropped by $13/mt on Friday to settle at $1,027/mt cfr. The index for imports of Taint/Tabor dropped by $4/mt and settled at $1,043/mt cfr India Friday.