Weekly round up: Base metals prices witness mixed trends

Domestic base metals prices witnessed mixed trends as the prices of a few commodities contracted w-o-w, while others followed a more established trend.

Procurement activities in the market were marked with caution and some trades were concluded only to meet immediate requirements amidst declining capacity utilisation levels, while most buyers refrained from taking positions.

Further, aluminium alloy ingot manufacturers, especially in north India, maintained production levels at around 50% owing to selling pressure as local demand remained muted.

In terms of overseas trades, market participants informed that runaway inflation has been corroding asset values, limiting buying power and eating into corporate spreads.

Exporters shared that regular fluctuation on exchanges are baffling for the market and sentiments are swaying due to concerns related to energy, natural gas and oil prices as well as banking rates which are impacting the base metals markets.

A few major Russian oil and coal importers are now enthused about the prospect of tight supply forcing domestic prices higher, which is goading them to stock up further in the hope of healthy spreads.

• Aluminium scrap import prices fall
  
  

Imported aluminium scrap prices (from the UK and the Middle East) decreased in the range of $80-140/t this week. On 6 September, the price of Middle East-origin imported aluminum talk scrap decreased by $140/t to $4,150/t CFR Nhava Sheva.

The sharp drop in import scrap prices was capped due to limited availability at yards. At present, there are limited offers in the imported market as the UK- and USA-based sellers are holding back offers for the short term.

Domestic aluminium tense scrap prices fell 1.36% to INR 145,000-146,000/t ($1,820-1,833/t) exy-Delhi.

• Domestic copper prices rise
  
  

Domestic copper armature scrap prices increased by 3.81% to INR 626,000/t ($7,859/t) w-o-w on rising LME 3-month prices by 3% resulting in a rise in secondary wire rod prices w-o-w by 3.81% to INR 670,000/t ($8,411/t).

• Lead, zinc prices fall
  
  

Domestic special high-grade (SHG) zinc ingot prices fell 7% at INR 295,000/t ($3,703/t) w-o-w. However, the LME's 3-month zinc contract prices, witnessed a marginal rise of 1% this week.

Moreover, domestic remelted lead ingot prices fell 2.65% at INR 176,000/t ($2,209/t), whereas refined lead ingot prices were recorded at INR 184,000/t ($2,310/t) exw-Delhi on 9 September.