Weekly round-up: Domestic base metal prices rise aligning with global trends
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At the close of trading on Friday, base metals prices on the London Metal Exchange (LME) showed positive trends. Zinc recorded the largest gain in terms of prices, increasing by 7.48%. Meanwhile, LME warehouse stocks exhibited negative trends, except nickel rising by 4.97%. This increase in LME price levels were particularly due to the China's monetary stimulus announcement.
On the LME, three-month aluminium futures increased by 6.48% to $2,646/tonne (t), and nickel prices were up by 2.94%, settling at $16,996/t. Copper prices were at $9,982/t, up by 5.34%, while zinc increased by 7.48% to $3,098/t. Lead climbed by 3.11% to $2,119/t.
This week, a similar trend reflected in India's imported and domestic base metal pricing for the week. Meanwhile, transactional activities in the market remained on the lower side due to higher offer price levels.
Aluminium
Imported scrap prices rise: Imported aluminium scrap prices in India drifted higher w-o-w by up to 2% amid a rise in LME prices following the Federal Reserve's rate cuts and China's new monetary stimulus and support for the property market. Meanwhile, transactional activities remained on the lower side for few grades due to significant bid-offer disparities seen in the market. In August 2024, aluminium scrap imports were recorded at 159,000 t, down by 7.3% m-o-m as against July's 171,600 t.
According to BigMint's benchmark assessments tense from the UAE was priced at $1,830/t, up by 1.7% w-o-w, while zorba 95/5 from the UK was assessed at $2,090/t, both CFR West Coast, India.
Domestic scrap prices remain stable: In the domestic market, tense scrap prices remained stable w-o-w in both Delhi and Chennai. According to BigMint's assessment, domestic tense scrap prices are now at INR 175,000/t ex-Delhi-NCR and INR 176,000/t ex-Chennai.
Aluminium ADC12 (non-OEM): India's spot prices of aluminium ADC12 alloyed ingots remained range-bound w-o-w in both the northern and southern regions, influenced by weak demand and stable domestic raw material costs. As per BigMint's benchmark assessments, ADC12 (non-OEM) grade stood at INR 207,000/t (t) in Delhi and INR 209,000/t in Chennai, showing minimal change w-o-w.
Copper
Imported, domestic: According to BigMint's assessment, talk originating from the US was assessed at $5,080/t, while talk scrap from the Middle East was priced at $4,750/t, both up by up to 2.6% w-o-w, CFR West Coast, India, and offers from Columbia were heard at 52.25% to CFR Chennai. Meanwhile, domestic copper armature scrap prices dropped to INR 770,000/t exy-Delhi. Meanwhile, secondary copper rod prices were at INR 822,000/t.
Copper: India's copper scrap imports experienced a slight 3.7% m-o-m decline, with August's volumes at 32,770 t compared to July's 34,000 t. This dip suggests a possible moderation in demand and preference for imports of substitutes such as cathodes and anodes, which saw a m-o-m rise.
India's copper pipe, tube imports reached 11,776 t in August 2024 hitting over 1.5-year high levels and a significant 33% increase m-o-m from July and over 185% y-o-y. This growth is driven by strong demand from infrastructure projects, government initiatives for electric vehicles, and the expanding heating, ventilation, and air conditioning (HVAC) market.
Zinc, lead
India's domestic zinc ingot prices increased by INR 12,000/t ($143/t) to INR 288,000/t following futures, with HZL prices rising marginally. Meanwhile, zinc LME prices were at $3,099/t, up by 6% w-o-w. Remelted lead ingot were assessed at INR 182,000/t ex-Delhi.
Imported prices: Middle East zinc diecast prices stood at $3,312/t CFR Mundra, up by 0.4%. Zinc shredded scrap clean prices from the EU stood at INR 201,000/t ex-Delhi and lead scrap 1% from Australia stood at 95% LME CFR Chennai.
In August 2024, semi-finished zinc ingot imports to India reached 15,093 t, marking a 24% increase compared to 12,188 t in the previous month. However, imports declined by 30% compared to 21,710 t in the same month last year. South Korea remained the leading supplier of zinc semi-finished ingots to India, accounting for approximately 55-60% of India's total imports in this category.
In the week ending 27 September 2024, deliverable base metals stocks in the warehouses registered with the Shanghai Futures Exchange (SHFE) displayed negative trends except nickel which saw an uptick of 11.6%, with copper showing the largest inflow of 33.2% w-o-w, reaching 40,779/t, according to the exchange's weekly stocks report.
Global updates
Global alumina production remains stable m-o-m in Aug'24: IAI
The latest data from the International Aluminium Institute (IAI) indicated that global alumina production in August 2024 was mostly unchanged at 12.512 mnt, compared to 12.511 mnt in July 2024. Output also remained stable y-o-y, with 12.517 mnt produced in August 2023. In China, alumina production was reported at 7.40 mnt in August, remaining largely stable from the previous month's 7.39 mnt.
Hydro, PADNOS launch advanced aluminium scrap sorting unit in the US
Hydro and PADNOS have begun commercial operations of their joint venture, Alusort LLC, in Grandville, Michigan, focusing on advanced aluminium scrap sorting. Utilising Hydro's proprietary HySort technology, the facility aims to enhance recycling efficiency, processing 20,000 t annually. This initiative supports the production of low-carbon aluminium, crucial for sustainable manufacturing and reducing landfill waste.
