Weekly round-up: Base metals prices on LME witness downward trends w-o-w
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- Copper demand driven by decarbonisation needs
- EU proposes Russian aluminium import ban
At close of trading on Friday, 31 January 2025, base metals prices on the London Metal Exchange (LME) showed negative trends, with zinc decreasing by 3.01% w-o-w. Meanwhile, LME warehouse stocks exhibited negative trends, with zinc, which showed a drop of 4.09% w-o-w.
On the LME, three-month aluminium stood at $2,594/tonne (t), up by 1.78%, while nickel prices decreased by 2.92% w-o-w to $15,210/t. Copper prices were at $9,048/t, up by 2.46% w-o-w, while zinc decreased by 3.01% w-o-w to $2,742/t. Lead inched up by 0.52% w-o-w to $1,949/t.
Aluminium
Imported aluminium scrap prices in India trended down w-o-w. A decline in London Metal Exchange (LME) aluminium tags weighed on prices of certain grades of scrap.
BigMint's benchmark assessment for Tense scrap originating from the US was at $1,840/tonne (t), up by $10/t w-o-w, while Wheels from the UK stood at $2,420/t, down $75/t w-o-w, both CFR west coast, India.
Domestic aluminium Tense scrap prices dropped by INR 1,000/t w-o-w, with ex-Delhi at INR 174,000/t and ex-Chennai at INR 175,000/t.
BigMint's weekly assessments for ADC12 (non-OEM) grade stood at INR 202,000/t in Delhi and INR 203,000/t in Chennai, stable w-o-w.
Copper
Domestic copper armature prices were assessed at INR 761,000/t ex-Delhi, up 1.7% w-o-w, while copper motors mix scrap prices moved up w-o-w to $1,150/t following LME prices which rebounded to over $9,300/t levels, up $140/t w-o-w.
Secondary continuously cast rods (CCR) (99.90%) were assessed at INR 807,000/t (ex-Delhi), remained range-bound w-o-w. Meanwhile, primary CCR prices also remained stable at INR 833,000/t.
Zinc
Zinc prices experienced mixed trends. Imported zinc diecast from the Middle East was assessed at $2,100/t CFR Mundra, down $10/t w-o-w, while domestic zinc ingots decreased by INR 6,000/t w-o-w to INR 274,000/t. Hindustan Zinc Limited (HZL) zinc ingots, however, rose INR 5,200/t w-o-w to INR 296,800/t ex-Jodhpur.
Lead
In the lead segment, domestic primary ingots increased by INR 6,500/t w-o-w to INR 198,000/t, while re-melted ingots increased by INR 5,000/t w-o-w to INR 178,000/t. Meanwhile HZL lead ingots were dropped by INR 11,300/t w-o-w to INR 198,600/t ex-Jodhpur.
Market updates
Codelco's copper production boost: Chilean mining giant Codelco is targeting 1.7 million tonnes (mnt) of annual copper production by 2030. To support its expansion, the company issued $2 billion in bonds in January, extending debt maturity without additional premiums. With planned investments of $4-$5 billion annually, Codelco remains optimistic about long-term copper demand, driven by decarbonization and advancing technology.
EU proposes ban on Russian aluminum imports: The European Commission has proposed its 16th round of sanctions against Russia, which includes a potential ban on primary aluminium imports, including alloys. If approved, certain essential items might be exempted.
In 2024, the EU imported approximately 330,000 tonnes of Russian aluminium, down from over 500,000 tonnes in 2023. The proposed ban could further reshape global aluminium trade flows, impacting key supply chains.
Outlook
The short-term outlook for base metals remains mixed. Copper demand is expected to stay robust, supported by decarbonization efforts, while aluminium and zinc markets could remain volatile amid geopolitical uncertainties and supply chain shifts.
