Weekly round-up: Domestic base metals prices remain range-bound w-o-w, futures fall

At close of trading on Friday, 12 July 2024, prices of base metals on the London Metal Exchange (LME) witnessed downtrends.

On LME, three-month aluminium futures fell by 2.13% to $2,481/t, while nickel prices settled at $16,856/t. Copper prices were at $9,877/t; zinc fell by 1.93% to $2,943/t and lead prices fell by 1.21% to $2,210/t.

This week, domestic and global base metals markets witnessed a downtrend. Domestic aluminium scrap prices remained range-bound w-o-w. However, imported aluminium prices saw a rise ahead of the EU holidays.

Aluminium

According to BigMint's assessment, tense scrap prices originating from the Middle East - particularly the UAE - saw a $50/t rise settling at $1,880/t and zorba 95/5 from the UK was at $2,060/t CFR west coast, India.

Meanwhile, a few grades like US tense 6-7% and UK taint tabor C/S recorded a rise of up to $80/t w-o-w moving down to $1,930/t and $1,830/t CFR west coast, respectively.

India sees 10% monthly drop in silicon metal imports

In May 2024, silicon metal imports into India declined by 7% to 7,400 tonnes (t) from 8,000 t in April 2024. However, imports remained consistent compared to the previous year, according to BigMint data.

During the same period, imports from China to India saw a significant m-o-m drop of about 15%. China is a major supplier, accounting for approximately 90% of India's silicon metal imports.

ADC12

Spot prices of aluminium ADC12 alloy ingots (automobile equivalent) in Delhi NCR and Chennai remained range-bound w-o-w, according to BigMint's latest assessment. In the Delhi NCR region, ADC12 spot prices were assessed at INR 213,000/t ex-Delhi, aligning with domestic tense scrap prices, which settled at INR 181,000/t ex-Delhi.

Likewise, ADC12 prices in Chennai were reported at INR 215,500/t on immediate payment basis, excluding GST. At the same time, casting scrap prices were at INR 182,000/t ex-Chennai.

Copper

BigMint reported range-bound levels in domestic copper armature prices to INR 770,000/t ex-Delhi, as LME's price levels drifted lower to $9,877/t. Secondary CCR rods prices remained at INR 822,000/t, while primary CC rods prices were at INR 865,000/t.

In the imported segment, copper motor mix originating from the US witnessed a 1.6% rise and brass honey (5%) from the UAE remained range-bound w-o-w amid correction in LME copper prices.

Zinc, lead

Zinc ingots are at INR 280,000/t, almost firm w-o-w. Meanwhile, lead ingots prices have remained almost stable at INR 189,000/t exw-Delhi. Meanwhile, Middle East zinc diecast (5%) prices were assessed at $2,140/t CFR Mundra.

China Market

In the week ending on 12 July, deliverable stocks of base metals in Shanghai Futures Exchange (SHFE)-registered warehouses experienced varied trends with aluminium witnessing the highest gain over 7% w-o-w reaching 262,200 t, as per the exchange's weekly stocks report.

The highest inflow of aluminium stocks was seen in Jiangsu warehouse this week, reaching 137,794 t from previous week's 124,287 t, moving up by 11% w-o-w.

Similarly, the SHFE future prices for base metals saw mixed trends with the highest gain seen in aluminium prices, up by 2.4% w-o-w reaching RMB 20,312/t ($2,799/t).