Weekly round-up: Domestic base metals markets largely muted; LME prices remain firm

• Imported aluminium scrap prices steady
  
  
• China's industrial profits drop slows
  
  

At close of trading on Friday, 27 December 2024, base metals prices on the London Metal Exchange (LME) showed an uptrend, with zinc increasing by 2.16% w-o-w. Meanwhile, LME warehouse stocks also exhibited mixed trends, with zinc showing the highest decline of 5.06% w-o-w.

On the LME, three-month aluminium stood at $2,558/tonne (t), up by 0.95%, while nickel prices increased by 1.31% w-o-w to $15,311/t. Copper prices were at $8,982/t, up by 0.46% w-o-w, while zinc increased by 2.16% w-o-w to $3,031/t. Lead dropped by 0.56% w-o-w to $1,969/t.

Aluminium

Imported aluminium scrap prices steady: Imported aluminium scrap prices in India remained firm w-o-w, amid tepid demand towards the year-end. BigMint's benchmark assessment for Tense scrap originating in the UAE stood at $1,800/t, while Zorba 95/5 from the UK stood at $2,110/t, both stable w-o-w on CFR west coast, India basis.

ADC12 non-OEM prices firm: Prices of aluminium (non-OEM) ADC12 alloyed ingots remained stable w-o-w across northern and southern India, driven by sluggish demand in the automotive sector, with year-end holidays affecting market activity. BigMint's weekly assessments placed ADC12 at INR 202,000/t (Delhi) and INR 203,000/t (Chennai). Additionally, India's export offers for Japan dropped to $2,380/t, with expectations of a market pick-up after mid-January'25.

Copper

Imported prices stable, domestic copper prices rise w-o-w: Domestic copper armature prices were assessed at INR 748,000/t ex-Delhi, up by 1.9% w-o-w, while imported copper motors mix scrap stood at $1,130/t CFR Mundra, stable w-o-w.

Secondary continuously cast rods (CCR) (99.90%) were assessed at INR 798,000/t ex-Delhi, up by 1.8%. Meanwhile, primary CCR prices stood at INR 800,000/t, stable w-o-w.

Zinc

Domestic zinc ingot prices stood at INR 288,000/t, stable as compared to last week. Hindustan Zinc (HZL) trimmed zinc ingot prices by 3% to INR 299,700/t ex-Jodhpur w-o-w.

Lead

Domestic lead primary ingots stood at INR 192,000/t and re-melted ingots at INR 175,000/t, remained marginally stable compared to last week. Additionally, HZL's lead ingot prices were reduced by 0.6% to INR 198,400/t ex-Jodhpur.

Chinese base metals market overview

In the week ending 27 December, deliverable base metals inventories at warehouses registered with the Shanghai Futures Exchanges (SHFE) displayed a mixed trend, with zinc showing an outflow of 24.7% w-o-w to 30,236 t, according to the exchange's weekly stock report.

Market updates

South Korea's exports continue growth in December: South Korea's exports are expected to rise 4.0% in December, marking the 15th consecutive month of growth. However, analysts predict slowing momentum in 2024 due to weakening demand, with concerns over potential US tariffs and a decline in production, except for semiconductors and IT products.

China's industrial profits decline slows in November: China's industrial profits dropped 7.3% in November, a slower pace than October's 10% decline. Despite some recovery, the country faces its worst annual profit drop in over 20 years, driven by weak domestic demand, a slowing housing sector, and trade uncertainties, with 2024 expected to show the steepest decline since 2000.