Weekly round-up: Base metals prices decline on global inflationary pressure

SteelMint's weekly assessment of the base metals market reveals a downward correction over the last few weeks on global concerns that resulted in the price contraction.

The macroeconomic concerns emanate from weakening commodities prices amid a general atmosphere of global recession coupled with the fear of gas supply cuts by Russia to the EU nations, which will inevitably result in high energy prices and lower capacity utilisation.

The narrowing inventory levels of most base metals on exchange houses like LME could have been a factor supporting prices. Still, spot and future prices drifted down up to 13%, particularly for nickel, followed by other base metals.

Import prices of aluminium

All imported aluminium scrap prices of UK- and Middle East-origin exhibited a downtrend this week in the range of $60/t-230/t. Prices of aluminium extrusion scrap fell $230/t to $2,440/t CFR Nhava Sheva on 21 June. LME's three-month contract aluminium prices fell nearly 2% to $2,456/t on 24 June.

Domestic prices

Domestic aluminium scrap prices saw mixed trends, falling up to INR 3,000/t ($38/t), except prices of aluminium taint tabor scrap and utensil scrap. Aluminium extrusion scrap prices fell INR 3,000/t ($38/t) to INR 181,000/t ($2,313/t) exy-Delhi on 24 June.

Nickel, stainless steel prices fall

LME's three-month nickel contract prices fell this week by nearly 13% to $22,400/t on 24 June.

The steep fall in nickel led to a correction in overseas stainless steel scrap offers by around $150/t. On the other hand, domestic buyers adopted a wait-and-watch strategy in a volatile market towards the weekend.

Domestic 304-grade stainless steel scrap prices exhibited a downtrend this week by 5.2% to INR 146,000/t ($1,866/t), exy-Delhi on 23 June.

304-grade stainless steel HR coil prices also fell this week by INR 5,000/t ($64/t) to INR 238,000/t ($3,041/t) exw-Mumbai on 21 June.

Copper downtrend

Copper LME three-month contract prices continued the negative streak, falling 6.48% to $8,381/t on 24 June - the biggest fall over the last year.

Domestic copper armature scrap prices declined 6.4% to INR 650,000/t ($8,306/t) exy-Delhi on 24 June.

Copper primary and secondary wire rod prices also fell this week; the price of primary wire rods decreased by 7.1% to INR 718,000/t ($9,175/t) and secondary wire rod prices fell 5.8% to INR 702,000/t ($8,971/t) exw-Delhi on 24 June.

Zinc edges lower

The LME's three-month zinc contract price exhibited negative trends, falling 5% to $3,350/t on 24 June.
The domestic special high-grade (SHG) zinc ingot price fell 1.1% to INR 321,000/t ($4,102/t) exw-Delhi on 24 June.

Lead prices down

LME's three-month lead contract prices fell steeply by 7.12% to $1,915/t on 24 June as against $2,062/t on 17 June.

Domestic primary and secondary lead ingot prices declined 3.4% to INR 198,000/t ($2,530/t) and 1.5% to INR 185,000/t ($2,364/t) exw-Delhi on 24 June.