Weekly round-up: Domestic base metal prices reflect global trends with mixed movements

At close of trading on Friday, 6 December 2024, base metals prices on London Metal Exchange (LME) showed mixed trends with copper increasing by 1.24%. Meanwhile, LME warehouse stocks also exhibited mixed trends, with nickel increasing by 3.31%.

On the LME, three-month aluminium futures increased by 0.35% to $2,603/tonne (t), while nickel prices increasing by 0.91% to $16,047/t. Copper prices were at $9,122/t, up by 1.24%, while zinc decreased by 1.03% to $3,071/t. Lead dropped by 0.05% to $2,071/t.

India's domestic base metals market remained range-bound for the week with minimal trade activities recorded.

Imported aluminium prices remain range-bound

Imported aluminium scrap prices in India remained range-bound w-o-w, with variations by up to 1.3%, amid slow trading activity. BigMint's benchmark assessment for Tense scrap originating from the UAE stood at $1,800/t, firm w-o-w, while Zorba 95/5 from the UK stood at $2,100/t, largely stable w-o-w, both prices CFR West Coast, India.

In the domestic market, Tense scrap prices remained steady w-o-w in both Delhi and Chennai, while other grades witnessed a downtrend. According to BigMint's assessment, domestic tense scrap stood at INR 174,000/t ex-Delhi NCR and INR 175,000/t ex-Chennai.

Prices of aluminium ADC12 alloyed ingots remained stable w-o-w in both the northern and southern regions of India, largely due to ongoing sluggish demand in the automotive sector and a considerably weakened export market.

BigMint's weekly assessments for ADC12 (non-OEM) grade stood at INR 201,000/t in Delhi and INR 203,000/t in Chennai, stable w-o-w.

Copper prices edge up

Domestic copper armature prices were assessed at INR 746,000/t ex-Delhi, up 1% w-o-w, while copper motors mix scrap prices remained stable at $1,130/t CFR Mundra, US.

Secondary continuously cast rods (CCR) (99.90%) were assessed at INR 792,000/t (ex-Delhi), reflecting a 0.3% increase. Meanwhile, primary CCR prices stood at INR 805,000/t.

Zinc edges up

Domestic zinc ingot prices stood at INR 298,000/t, up 2.8% w-o-w as compared to last week's INR 290,000/t. Hindustan Zinc (HZL) raised zinc ingot prices by INR 1,800/t stood at INR 309,300/t ex- Jodhpur.

Lead remains stable

Domestic lead primary ingots stood at at INR 195,000/t and remelted ingots at INR 177,000/t, remained stable compared to last week. Additionally, HZL's lead prices raised by INR 800/t stood at INR 206,100/t ex- Jodhpur.

China base metals market overview

In the week ending 6 December, deliverable base metals stocks in the warehouses registered with the Shanghai Futures Exchanges (SHFE) displayed an uptrend, except nickel which showed an inflow of 3.3% w-o-w to 34,090/t, according to the exchange's weekly stock report.

Global updates

Copper shortage threatens India's RE goals: India's copper production dropped from 4.13 mnt in FY19 to 3.78 mnt in FY24. Meanwhile, copper concentrate imports have surged to INR 26,000 crore in FY'24. As energy transition efforts could increase copper demand by 21 mnt by 2035, India's renewable energy goals, including achieving net-zero emissions by 2070, face significant risks due to supply constraints

Aluminium premiums rise for Q1 2025: Global aluminium producers have set premiums for Japanese buyers at $230-260/t for January-March 2025 shipments, marking a 31%-49% increase from the current quarter. The price hike is due to tighter supply in Asia following China's export tax refund cancellation on semi-manufactured aluminium and ongoing bauxite shortages from Guinea and Australia.