On April 19, 2023, aluminium alloy ingot ADC12 domestic prices increased by INR 2,000 per tonne to INR 199,000 per tonne. The increased tendency was attributed to the moderate OEM (original equipment manufacturer) transactions.
The medium-scale alloy ingot producers (secondary aluminium) saw selling pressure due to limited buying interest for substandard quality or close to appropriate chemical composition.
The utilisation of production capacity may be impacted in the short term among medium-scale secondary producers as the workforce typically opts out due to extreme heat. The government's metallurgical department has also announced the same. Still, the time duration would be limited, according to one of the traders based in the western region.
Another small-scale secondary producer stated that established trade associates, or Original Equipment Manufacturers (OEMs), may not be as affected, whether you say low demand or a limited workforce amid a healthy realisation due to significant raw material procurement from domestic as well as international markets and maintained supplies to their regular customers.
OEMs play an essential part in the manufacturing industry by designing and manufacturing components and products for various sectors. "In recent times, OEM suppliers have performed better amid advancements in the die-casting industry," according to a credible source.
Additionally, the die-casting sector has also seen some advancement because of the recent increase in demand for lightweight materials, particularly in the automotive and aerospace industries.
Received under the content exchange agreement with SteelMint
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