Weekly round-up: Domestic base metals prices mirror global trends
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At close of trading on Friday, 2 August 2024, prices of base metals on the London Metal Exchange (LME) witnessed a downtrend barring nickel.
On LME, three-month aluminium futures fell by 1% to $2,263/t, while nickel prices settled at $16,273/t, a significant increase of 3.03%. Copper prices were at $9,055/t, down 0.61%; zinc fell by 0.60% to $2,653/t and lead prices dropped 2.13% to $2,023/t.
This week, domestic and global base metals markets witnessed a downtrend. Meanwhile, imported aluminium prices saw a decline of 4%. Similarly, copper, zinc and lead prices also witnessed a downward correction in prices.
Aluminium
India has seen a notable decline in imported aluminium scrap prices w-o-w, attributed to a decrease in LME aluminium prices. Prices for all grades have fallen by up to 4% this week leading to market uncertainty and a cautious approach among market participants.
According to BigMint's assessment, Tense scrap from the Middle East, particularly the UAE, decreased by $60/t, settling at $1,730/t. Zorba 95/5 from the UK also decreased by $25/t to $1,975/t CFR west coast, India.
Spot prices of aluminium ADC12 alloy ingots (non-OEM) in Delhi NCR and Chennai fell w-o-w, as per BigMint's latest assessment. In the Delhi-NCR region, ADC12 spot prices were assessed at INR 209,000/t ex-Delhi, aligning with domestic tense scrap prices which settled at INR 175,000/t ex-Delhi.
Likewise, ADC12 prices in Chennai were reported at INR 211,000/t on immediate payment basis, excluding GST. At the same time, casting scrap prices were at INR 176,000/t ex-Chennai.
According to the Ministry of Mines, India's primary aluminium production increased by 1.2% in Q1 of FY'25, reaching 1.04 million tonnes (t) from a level of 1.02 mnt in the same period of FY'24.
Copper
In the domestic segment, copper armature scrap prices inched up to INR 753,000/t exy-Delhi. Meanwhile, copper prices on the LME increased by 0.6% w-o-w to $9,055/t. Secondary copper rod prices were assessed at INR 791,000/t
In the import market, brass honey 2% from Australia was heard traded at 62-62.5% LME and USA copper motors mix was heard at $1,180/t CFR Mundra.
Zinc, lead
India's domestic zinc and lead prices remained range-bound w-o-w. Zinc prices were marginally up by 1% to INR 263,500/t amid stability in LME prices. Lead prices remained stable. Domestic re-melted lead is priced at INR 187,000/t ex-Delhi and Middle East zinc diecast prices are at $2,085/t CFR Mundra.
China market
In the week ending 2 August, deliverable stocks of base metals in Shanghai Futures Exchange (SHFE)-registered warehouses declined. However, lead witnessed an outflow of over 15% w-o-w reaching 34,535 t, as per the exchange's weekly stocks report.
