In Chennai, current offers for Tense scrap range between INR 172,000 and INR 173,000 per tonne. However, bids are being placed in INR 170,000 to INR 171,000 per tonne. Meanwhile, the spot price for ADC12 in Chennai is reported at INR 208,000 to INR 210,000 per tonne ex-warehouse.
Despite the tight availability of Tense scrap, ADC12 prices have remained relatively stable throughout the week. This shortage is affecting the northern region's capacity utilization rates of certain mid-scale manufacturers.
"We are still worried about getting enough Tense scrap, So we are being careful about future bookings of ADC12. We are sticking to monthly or quarterly contracts and checking our raw material stocks and upcoming deliveries before accepting new orders for ADC12", stated an aluminium alloy manufacturer.
Industry participants anticipate that settlement prices for ADC12 with major automobile manufacturers in India will likely stay steady in April. There are mixed expectations, with some foreseeing possible adjustments in March prices while others anticipate potential increases in April.
