Weekly round up: Base metals prices show uptrend amid depleting stocks

Domestic base metals prices reflected an uptrend throughout the week, although the market remained closed on 15 Apr'22 due to Good Friday.

Aluminium
Stocks kept dipping and fell by 7,750 tonnes (t) to 608,000 t w-o-w at LME-registered warehouses.

SteelMint's assessment for aluminium Tense scrap exy delhi stood at INR 174,000/t ($2,279/t) and ADC12 stood at INR 215,000/t ($2,817/t), stable w-o-w.

Further, aluminium scrap import prices CIF Nhava Sheva decreased in the range of $140-170/t w-o-w on 14 April.

Maruti Suzuki India Ltd., India's leading car manufacturer, recently announced aluminium ADC12 alloy ingot settlement prices for regular sourcing, which has been increased by around INR 22,000/t to INR 229,850/t for Mar. Maruti usually announces prices after completing one month's sourcing. SteelMint assessed ADC12 prices at INR 215,000/t exw Faridabad, excluding GST, on 13 April. The Chinese market is still under lockdown and Indian suppliers are waiting for resumption of exports. Read more

Nickel

Prices of nickel on LME showed a downtrend this week. Three-month prices fell $680/t to $33,175/t towards the end of the week compared to last week's levels.
Stocks of nickel were assessed at 72,600 t on 14 April, down 1,092 t as against last week.

The impact of the LME decline was also seen in domestic stainless steel prices. One top north indian producer reduced prime CRC 304 price by INR 7,000, although domestic 304 grade stainless steel scrap prices were seen stable. However, grade 316 prices increased w-o-w by around INR 5,000/t ($65/t) on 14 April.

Stable LME prices and softer demand from top north Indian manufacturers kept prices of 304 scrap stable, while supply shortage led to the hike in 316 scrap prices. SteelMint's assessment of stainless steel grade 304 scrap stands at INR 193,000/t ($2,528/t) and for grade 316 scrap the price is INR 286,000/t ($3,747/t) exy Delhi.

Copper

Despite the fall in aluminium and nickel prices, copper showed some stability in terms of both cash and three-month contract prices.

However, copper inventory was recorded at 110,675 t, up sharply by around 7,000 t from 103,775 t last week.

SteelMint's assessment for copper armature scrap exy Delhi stood at INR 748,000/t ($9,803/t), up INR 2,000/t ($26/t) w-o-w. Read more

Zinc

The zinc market reflected positive sentiments, with the three-month contract prices at $4,412/t, up $158/t as against last week. Stocks have declined by 10,075 t to 115,600 t on Thursday.

Moreover, the weekly domestic zinc market showed signs of an uptrend as prices increased due to restocking of material which led to a supply shortage in the market.

Also, the shortage in global markets like Europe amidst production cuts by particular smelters owing to high energy prices and diminishing stocks at LME-registered warehouses was a major factor that strengthened prices across regions.

SteelMint's assessment for special high-grade zinc ingots stood at INR 380,000/t ($4,980/t), up INR 17,000/t ($223/t) w-o-w.