Weekly round-up: Domestic base metals prices mirror global trends

At close of trading on Friday, 15 November 2024, base metals prices on the London Metal Exchange (LME) showed negative trends except aluminuim which gained 1.11%. Meanwhile, LME warehouse stocks exhibited mixed trends, with nickel increasing by 2.73%.

On the LME, three-month aluminium futures increased by 1.11% to $2,649/tonne (t), while nickel prices fell by 5.23% to $15,540/t. Copper prices were at $9,002/t, down 4.67%, while zinc decreased by 1.07% to $2,947/t. Lead fell by 3.31% to $1,957/t.

India's domestic base metals market witnessed a downtrend aligning with the global base metals price trends. Meanwhile, trade activities remained at low to moderate levels.

Imported aluminium prices rise

• Imported aluminium scrap prices in India edged up, increasing by up to 1.4% w-o-w. Post-Diwali, the market saw a mild uptick in activity, leading to higher offers as demand picked up despite lower LME levels.
  
  
• BigMint's benchmark assessment for tense scrap originating from the UAE stood at $1,770/t, stable w-o-w. Meanwhile, zorba 95/5 from the UK stood at $2,100/t, up $30/t, both CFR west coast, India.
  
  
• Domestic spot prices of aluminium ADC12 alloyed ingots remained relatively stable w-o-w across both northern and southern regions in India, largely due to ongoing sluggish demand in the automotive sector and a weakened export market.
  
  
• BigMint's weekly assessments for ADC12 (non-OEM) grade stood at INR 200,000/tonne (t) in Delhi and INR 202,000/t in Chennai, firm w-o-w.
  
  
• In the domestic market, tense scrap prices remained firm w-o-w in both Delhi and Chennai. According to BigMint's assessment, domestic tense scrap prices stood at INR 172,000/t ex-Delhi NCR and INR 173,000/t ex-Chennai.
  
  

Copper shows negative movements

• Domestic copper armature prices were assessed at INR 750,000/t ex-Delhi, a drop of 3% w-o-w. Meanwhile, imported scrap prices decreased by up to 4% w-o-w, due to a fall in LME prices.
  
  
• Prices of secondary continuously cast rods (CCR) (99.90%) were at INR 800,000/t ex-Delhi, down 3% w-o-w. Meanwhile, primary CCR prices stood at INR 810,000/t, down 4% w-o-w.
  
  
• BigMint's assessment of US-origin copper motor mix was at $1,100/t, a fall of $30/t w-o-w.
  
  
• Copper prices declined sharply this week, driven by the strengthening US dollar following Donald Trump's presidential election victory and weaker demand from China.
  
  

Zinc records slight drop

• Domestic zinc ingot prices stood at INR 285,000/t, down 3% w-o-w. Hindustan Zinc (HZL) reduced zinc prices by INR 5,500/t ($65/t) to INR 295,800/t ($3,499/t).
  
  

Lead remains largely stable

• Domestic lead primary ingots stood at INR 195,000/t and remelted ingots at INR 179,000/t, with a slight drop of 1.5% compared to last week. Additionally, HZL's lead prices stood at INR 200,500/t ($2,369/t) ex-Jodhpur, a drop of INR 1,300/t ($15/t).
  
  

China base metals market overview

• In the week ending 15 November, deliverable base metals stocks in the warehouses registered with the Shanghai Futures Exchange (SHFE) displayed mixed trends, with zinc showing the largest inflow of 24.8% w-o-w to 90,661/t, according to the exchange's weekly stocks report.
  
  

Global updates

Japan's economy shows mixed growth in Q3CY'24

Japan's economy grew by an annualised 0.9% in Q3CY'24 (July-September), surpassing forecasts but slowing from Q2's 2.2%. A surprise 0.9% rise in private consumption offset weak capital expenditure, which fell 0.2%. Despite robust consumer spending, risks from global slowdowns, especially in the US and China, and potential US tariffs under Trump pose challenges for Japan's export-dependent economy.

Aluminium industry seeks protection against imports

The Aluminium Association of India (AAI) has urged the government to raise import duties on aluminium products to protect the domestic industry. Rising imports, particularly from China, threaten local growth. With cumulative investments of over INR 1.5 lakh crore having been made already. AAI seeks an additional INR 3 lakh crore to meet growing demand, create jobs, and support India's self-reliance.