Weekly round-up: Domestic base metals prices show downward trend

The domestic base metals market remained negative as London Commodity Exchange (LME) prices remained volatile throughout the week. Cash prices and three-month future contract of almost all base metals exhibited mixed trends and settled at a lower level by the weekend.

Limited buying inquiries were seen in the domestic market owing to slow construction activities in the monsoon and lower bids from buyers.

The Indian currency ended trading at 79.23 against the dollar. The index rose to nearly 2-decade highs at around 107.30 earlier in the week against the backdrop of further deterioration in the risk complex in response to rising recession talks.

Base metal prices, however, also showed a recovery at the end of this week due to reports of relief package in China. There is a buzz in the market that China's Ministry of Finance is considering allowing local governments to sell RMB 1.5 trillion ($220 billion) of special bonds in the second half, an unprecedented acceleration of infrastructure funding aimed at boosting up the country's worried economy.

Aluminium scrap import prices down

• All imported aluminium scrap (UK and Middle East-origin) prices fell this week to $50-190/t. Middle East-origin imported aluminium talk scrap prices dropped by $190/t to $4,500/t CFR Nhava Sheva on 5 July.
  
  
• LME aluminium three-month contract prices were down 0.28% to $2,437/t on 8 July, as against 1 July.
  
  

Domestic aluminium prices range bound

• Domestic aluminium scrap prices remained rangebound throughout the week. Aluminium tense scrap prices were recorded at INR 150,000/t ($1,891/t) exy-Delhi, on 8 July.
  
  

LME nickel three-month prices down

• Domestic 304 grade stainless steel scrap prices were down 8.7% to INR 126,000/t ($1,588/t) exy-Delhi on 7 July. Prices of 304 grade stainless steel HRC was recorded at INR 235,000/t ($2,962/t) on 5 July.
  
  
• Higher offers dampened demand for scrap while mills were not ready to lower offers as they bought the material at high prices. This resulted in sellers holding their offers.
  
  
• LME three-month nickel contract prices were down marginally to $21,581/t on 8 July, as against $21,824/t on 1 July.
  
  

Copper prices slip by 8%

• Domestic copper armature prices were down 8% to INR 593,000/t ($7,475/t) exy-Delhi on 8 July. Prices of copper primary and secondary were down by 6.5% and 7.5% to INR 664,000/t ($8,370/t) and INR 641,000/t ($8,080/t) w-o-w exw-Delhi, respectively.
  
  
• The three-month copper contract prices on LME were also down by 3% to $7,806/t on 8 July, as against 1 July.
  
  

Zinc prices fall over 6%

• Domestic special high-grade (SHG) zinc ingots prices fell by 6.5% to INR 285,000/t ($3,592/t) exw-Delhi on 8 July w-o-w.
  
  
• LME three-month zinc contract prices showed a positive trend this week, up by 2.3% to $3,099/t on 8 July, as against $3,029/t on 1 July.
  
  

Lead prices down up to 3%

• Domestic remelted lead ingot prices showed a negative trend this week, down by 3% to INR 175,000/t ($2,206/t) exw-Delhi, on 8 July w-o-w.
  
  
• Prices of primary lead ingots were recorded at INR 187,000/t ($2,357/t) exw-Delhi, down 2.7%.
  
  
• The LME three-month lead contract prices inched down by nearly 1% to $1,918/t on 8 July, as against 1 July.