Weekly round-up: Domestic base metals prices reflect divergent trends
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At the close of trading on Friday, 24 May 2024, prices of base metals on the London Metal Exchange (LME) witnessed divergent trends.
On the LME, three-month aluminium futures increased by 1.9% to $2,662/t, while nickel settled at $20,250/t (down 3.94%). Copper prices were at $10,324/t, zinc rose 0.86% to $3,056/t and lead prices rose by 0.66% to $2,298/t.
Throughout the week, domestic base metals markets experienced price gains. Imported and domestic aluminium scrap prices were also on the positive side. Meanwhile, copper, zinc and lead prices gained.
Aluminium
India's primary aluminium producers have increased P1020 primary ingot prices by up to INR 7,750/t which, in turn, has slightly increased the P1020 ingot spot price in Delhi NCR.
BigMint's assessment of spot prices of aluminium ADC12 alloy ingot rose by INR 3,000/tonne (t) to INR 215,000/t w-o-w exw-Delhi NCR. Notably, tense scrap prices were at INR 188,000/t ex-Delhi, marking a weekly increase of 2.7%.
Taint tabor (USA, HRB-3%) rose by $30/t to $2,040/t. Tense scrap from the US remained stable at $1,960/t. The primary driver was the w-o-w increase in LME aluminium prices.
In April, India's imports of aluminium scrap reached 135,816 t, indicating a slight improvement compared to the previous month's 128,861 t. However, there was a slight decrease in total import volumes compared to April 2023, which stood at 141,894 t.
Copper
BigMint reported a 1% weekly increase in domestic copper armature prices to INR 815,000/t ex-Delhi, as LME's 2-year high price levels at over $10,300/t sustained. Secondary CCR rods rose by 1.8% to INR 875,000/t, while primary CC rods prices increased by 2.6% to INR 920,000/t.
The International Copper Study Group (ICSG) recently unveiled preliminary figures which showed a global rise of approximately 5.3% in refined copper production in March this year.
Zinc, lead
Hindustan Zinc Ltd. (HZL) has raised zinc ingot prices by INR 9,700/t ($116/t) today. Notably prices at a 1-year high levels. Zinc ingots are now at INR 295,400/t ($3,549/t) compared to 13 May. Meanwhile, lead ingot prices have moved up by INR 6,900/t to INR 221,600/t ($2,662/t) ex-Jodhpur.
Domestic zinc and lead prices saw slight gains w-o-w amid an increase in LME futures as well as price hikes by HZL. Zinc ingot prices in Delhi rose to INR 282,000/t, up 2.8%. Re-melted lead prices stood at INR 189,000/t, ex-Delhi. Meanwhile, Middle East zinc diecast (5%) prices were at $2,180/t CFR Mundra.
Global update
According to latest data from the International Aluminium Institute (IAI), aluminium production in April has decreased, reaching 5.90 mnt, marking a 3% m-o-m decrease from 6.09 mnt. In contrast, production witnessed a rise of 3.3% y-o-y from 5.71 mnt in April 2023.
