Weekly round-up: Domestic, global base metals prices exhibit positive trends

At the close of trading on Friday, 13 September 2024, base metals prices on the London Metal Exchange (LME) showed positive trends. Zinc recorded the largest gain in terms of price, increasing by 6.88%. Meanwhile, LME warehouse stocks exhibited outflows, except for nickel, which increased by 1.35%.

On the LME, three-month aluminium futures increased by 5.51% to $2,471/tonne (t), and nickel prices were up by 0.32%, settling at $15,944/t. Copper prices were at $9,308/t, up by 3.17%; zinc increased to $2,904/t; and lead climbed 4.08% to $2,043/t.

Aluminium

Imported scrap prices mirror LME price drop: Imported aluminium scrap prices in India drifted lower by up to 2.8% w-o-w amid weak demand. Meanwhile, trade activities remained on the lower side due to bid-offer disparities seen in the market for some major grades.

According to BigMint's benchmark assessments, tense from the UAE was priced at $1,790/t, down 2.2% w-o-w, while zorba 95/5 from the UK was assessed at $2,070/t, both CFR west coast, India.

Domestic scrap edges down: In the domestic market, tense scrap prices inched down w-o-w in both Delhi and Chennai. According to BigMint's assessment, domestic tense scrap prices are now at INR 174,000/t ex-Delhi-NCR and INR 175,000/t ex-Chennai.

Aluminium ADC12 (non-OEM) declines: Spot prices of aluminium ADC12 alloy ingots (non-OEM) in Delhi-NCR and Chennai decreased by INR 2,000/t w-o-w. As per BigMint's benchmark assessments, prices of the ADC12 (non-OEM) grade stood at INR 206,500/t in Delhi and INR 208,500/t in Chennai.

Copper

Imported scrap prices trend upward: According to BigMint's assessments, talk scrap from the United States (US) stood at $4,850/t, a 0.7% w-o-w rise. Prices of Middle East-origin scrap, largely from the United Arab Emirates (UAE), were recorded at $4,650/t, up by 1.1% w-o-w.

Copper motor mix scrap is being offered at $1,200/t by sellers based in the European Union (EU) and the US. However, these prices seem to be higher than the bids currently being placed, though BigMint noted traded levels concluding at $1,160-1,170/t.

Domestic copper inches up: Domestic copper armature prices were assessed at INR 729,000/tonne (t) ($8,682/t) exy-Delhi, an increase of 2.1% w-o-w. Copper futures on the London Metal Exchange (LME) recently stood at $9,308/t.

Zinc, lead

Domestic prices slide: India's domestic zinc and lead prices dipped w-o-w. Domestic zinc prices dropped to INR 265,000/t, a decrease of INR 1,000/t, in line with a 2% reduction in HZL's prices. Remelted lead prices fell to INR 183,000/t, down by INR 3,000/t, mirroring a 2% decline in HZL's prices.

Imported prices decline: Zinc diecast scrap (5%) originating from the Middle East stood at $2,060/t CFR Mundra, down from $2,095/t CFR Mundra last week.

China base metals market witnesses fluctuations

In the week ending 13 September 2024, deliverable base metals stocks in the warehouses registered with the Shanghai Futures Exchange (SHFE) displayed mixed trends, with lead seeing a rise of 68.7% w-o-w, according to the exchange's weekly stocks report.

Indian firms sign MoU with UAE for critical minerals supply chain

Indian entities Khanij Bidesh India Limited (KABIL), Oil India Limited (OIL), and ONGC Videsh Limited (OVL) have signed an MoU with UAE's International Resources Holding. The MoU provides for joint project identification, due diligence, risk management, and development of a long-term offtake strategy. This collaboration aims to enhance global critical minerals supply chains and contribute to a sustainable future for Atmanirbhar Bharat.

Global updates

Vedanta to boost nickel sulphate production amid growing EV demand

Vedanta is planning to increase its nickel and nickel sulphate production to meet the rising demand for electric vehicle (EV) battery materials in northeast Asia. Although India's EV market is still developing, Vedanta aims to capitalise on international opportunities. The company has also urged the Indian government to negotiate with Japan and South Korea to remove import duties on nickel sulphate.

Fed may cut rates by 0.25% next week

The Federal Reserve is anticipated to implement a quarter-percentage-point rate cut at its upcoming meeting on 17-18 September. Despite persistent core inflation, recent data showing a slower rise in the consumer price index reduces the likelihood of a larger cut.