The weekly Davis Index for LM6 rose by Rs4,000/mt($56.07/mt) and settled at Rs141,000/mt ex-works Mumbai on Monday. Prices increased fuelled by a rise in input costs as domestic markets faced shortage of silicon used as a raw material in alloys.
Silicon prices went up by Rs170,000/mt from Rs116,000-120,000/mt two weeks ago. India imports silicon from China. With Chinese markets shut amid the Coronavirus outbreak, supply of silicon tightened in the market. Shipments are unlikely to leave Chinese shores even in the coming few days.
The index of ADC12 ex-works Mumbai producer rose by Rs583/mt to Rs113,250/mt from the week prior.
The weekly index for ADC 12 Ex works Delhi producer fell by Rs667/mt ($/mt) to Rs114,333/mt ex-works Delhi on Monday, driven by a decline in imported scrap prices and lowered exports of ADC12 to China. Suppliers to larger ingot consumers kept weekly ADC12 prices unchanged at Rs117,500/mt del Delhi consumer.
The weekly Davis Index for Indian imports of Tense scrap dropped by $10/mt on Friday to settle at $1,040/mt cfr. The index for imports of Taint/Tabor dropped by $15/mt and settled at $1,050/mt cfr India Friday.
Alloy manufacturers in Kolkata sold ADC12 at Rs110,000/mt, the prices remained flat amid decreased input cost and plummeted demand from China.
The last heard export trade to China was two weeks ago, when ADC12 makers sold ADC12 at $1,750/mt cfr China. Alloy makers said that Chinese markets are unlikely to open before Feb 19.