Weekly round-up: Domestic base metals prices remain largely stable amid slow recovery post-Diwali
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- Domestic Al, Cu prices hold firm amid weak demand
- China stimulus speculation boosts base metal prices
At close of trading on Friday, 8 November 2024, base metals prices on the London Metal Exchange (LME) showed negative trends. Zinc recorded the sharpest drop, decreasing by 3.56%. Meanwhile, LME warehouse stocks exhibited mixed trends, with nickel increasing by 11.88%.
On the LME, three-month aluminium futures increased by 0.31% to $2,620/tonne (t), while nickel prices fell by 2.96% to $16,397/t. Copper prices were at $9,443/t, down 1.89%, while zinc increased by 0.42% to $3,102/t. Lead fell by 3.56% to $2,979/t.
Imported aluminium prices edge down
- Imported aluminium scrap prices in India saw a slight fall w-o-w. Amid weak buying interest, bid-offer disparities emerged, despite range-bound LME aluminium levels.
- BigMint's benchmark assessment for tense scrap originating from the UAE was at $1,770/t, slightly lower w-o-w, while zorba 95/5 from the UK stood at $2,070/t, both CFR west coast, India.
- Domestic spot prices of aluminium ADC12 alloyed ingots remained almost stable w-o-w in both the northern and southern regions of the country, pressured by weak demand and stable domestic raw material costs.
- BigMint's benchmark assessments for ADC12 (non-OEM) grade stood at INR 202,000/t in Delhi and INR 204,000/t in Chennai, stable 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 mixed movements
- Domestic copper armature prices were assessed at INR 771,000/t ex-Delhi, a rise of 3% w-o-w. Meanwhile, imported scrap prices decreased by up to 7% w-o-w, due to a fall in LME prices.
- BigMint's assessment of US-origin copper motor mix decreased by 7% w-o-w to $1,130/t.
- Copper demand in India remains relatively low, while China has increased its purchases for the same, particularly from suppliers in Pakistan and Australia. This surge in China's buying has caught the attention of global markets.
- Global refined copper supply outpaced demand from January to August, owing to increased production in China and the Democratic Republic of the Congo (DRC), according to the International Copper Study Group (ICSG).
Zinc records slight drop
- Domestic zinc ingot prices stood at INR 295,000/t, down 1% w-o-w. Hindustan Zinc (HZL) reduced zinc prices by INR 6,100/t ($72/t) to INR 301,300/t ($3,571/t).
Lead remains largely stable
- Domestic lead primary ingots stood at INR 198,000/t and remelted ingots at INR 179,000/t, stable compared to last week. Additionally, HZL's lead prices stood at INR 200,500/t ($2,376/t) ex-Jodhpur, a drop of INR 500/t ($6/t).
China base metals market overview
- In the week ending 8 November, deliverable base metals stocks in the warehouses registered with the Shanghai Futures Exchange (SHFE) displayed mixed trends, with lead showing the largest inflow of 17.6% w-o-w to 66,298/t, according to the exchange's weekly stocks report.
Global updates
- China stimulus boosts base metal prices: Base metals prices rose this week, fuelled by a weaker US dollar and speculation about China's economic stimulus. The greenback's decline increased the appeal of dollar-denominated metals, while expectations of Chinese liquidity boosts and infrastructure spending drove up demand. Copper, aluminium, and lead prices saw gains, particularly on the Shanghai Futures Exchange, as investors expect further growth.
- Philippines' GDP growth slows to 5.2% in Q3: The Philippines' economy grew 5.2% y-o-y in Q3 2024, slower than the 5.7% forecast, as bad weather hindered government spending and agricultural output. Despite this slowdown, the government remains optimistic about meeting its 2024 growth target of 6-7%, citing improved sentiment and central bank policies boosting spending.
