- OEM inventories continued limiting fresh procurement
- Domestic ADC12 prices likely to soften further
India’s leading automaker reduced ADC12 settlement prices by INR 13,400/t to INR 349,600/t for July 2026 from INR 363,000/t, marking the second price correction after consistent price increases since the beginning of 2026. The reduction reflects weaker market sentiment and aggressive negotiations with suppliers.
The price correction largely reflects the decline in LME aluminium prices, which has weighed on aluminium scrap and ADC12 alloy values. Market sentiment has also been pressured by the influx of duty-free (FTA) ADC12 imports over the past two months, particularly in South India, resulting in ample material availability.
In addition, most OEMs are understood to be carrying comfortable ADC12 inventories, reducing the need for fresh procurement and limiting spot buying activity.
The market had been awaiting the leading automaker’s July settlement as a key pricing benchmark. Following the settlement, a similar correction is expected across the domestic market. Current offer levels are heard at INR 345,000-347,000/t in Delhi and INR 342,000-345,000/t in Chennai, although prices could witness further downside if buying interest remains subdued.
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