- ADC12 prices decline for second consecutive month
- Suppliers reassess offers following settlement reduction
India’s leading automaker reduced its ADC12 settlement price by INR 12,000/t to INR 305,000/t for September 2026, from INR 317,000/t in August, marking a 3.8% m-o-m correction. The reduction follows the sharp INR 32,600/t decline recorded in August and reflects continued pressure from subdued demand, lower raw material costs and cautious procurement by buyers.
The latest correction comes amid weak spot buying activity in the domestic ADC12 market. Comfortable inventories with most OEMs have reduced the urgency for fresh purchases, while buyers continue to remain cautious amid expectations of further price adjustments. Increased availability of duty-free FTA material, particularly in South India, has also added to supply pressure and weighed on domestic market sentiment.
The September settlement is expected to influence domestic ADC12 pricing, with suppliers likely to reassess their offers in line with the new benchmark. Market participants are closely monitoring demand from the automotive sector, raw material prices and imported material availability to gauge the direction of prices in the coming weeks.
With procurement remaining cautious and inventory levels comfortable, ADC12 prices could remain under pressure in the near term, although any recovery in automotive demand or raw material prices could provide some support.
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