Weekly round-up: Domestic base metals market in line with global market; lead stocks gain over 6%

Base metals prices on the London Metal Exchange (LME) majorly remained positive for the week closing on 8 March 2024. Notably, lead prices gained by 3.4% w-o-w. Meanwhile, stocks at LME registered warehouses witnessed outflows barring lead.

Conversely, lead inventories experienced a significant rise of more than 6%, reaching 191,575 t from 179,250 t. In contrast, copper supplies saw the largest decrease, exceeding 7% and dropping from 121,375 t to 112,800 t.

On the LME, three-month aluminium futures remained largely stable at $2,240/t, while nickel settled at $18,011/t (up 1.9%). Copper prices were at $8,579/t (up 0.8%), zinc gained by 4.5% to $2,527/t and lead prices rose by 3.4% to $2,104/t.

During this week, the domestic and global base metal markets synchronised. Both imported and domestic aluminum scrap markets maintained elevated levels. Additionally, there was an uptick in prices observed in the copper, zinc, and lead markets.

Aluminium

During the week, primary aluminium ingot (P1020) prices in the spot market rose amid price hikes by primary players.

Spot prices for Aluminum ADC12 alloy ingots (automobile equivalent) rose marginally to INR 205,000/t w-o-w ex-works Delhi, excluding GST. This uptick coincided with heightened local tense scrap prices in northern and southern India, reflecting ongoing shortages, as per BigMint. Meanwhile, Aluminum ADC12 alloy ingot prices for automobile OEMs surged by INR 10,000/t m-o-m to INR 214,000/t ex-works Delhi, excluding GST.

In the local market, the shortage of raw materials, notably tense scrap, has led to elevated prices. Tense scrap is currently priced at INR 175,000/t, ex-Delhi (excluding GST).

In India, imported aluminum scrap prices rose due to increasing LME levels, global and domestic material shortages, and rising freight rates. BigMint reported up to a 2.3% increase, with UAE tense scrap up $40/t and UK zorba 95/5 up $5/t, CFR Mundra.

Copper

Domestic copper prices increased w-o-w, with armature scrap at INR 691,000/t and secondary rods at INR 731,000/t, ex-Delhi. Meanwhile, copper cathode prices on the MCX rose by 1% w-o-w to INR 731,000/t as against the previous week for the March contract aligning with the domestic market.

BigMint's assessment of brass honey scrap (4%) from the Middle East rose by 1% w-o-w to $5,490/t. Similarly, US motor mix gained 1.3% to $1,160/t, CFR Mundra.

Copper prices on COMEX witnessed a weekly rise by 1% settling at $8,557/t from the previous week, aligning with imported copper market prices.

Zinc, lead