Weekly round-up: Global, domestic base metal prices witness contrasting trends

• Imported aluminium scrap prices remain steady
  
  
• Imported copper scrap tags gain, domestic stable
  
  

At the close of trading on Friday, 13 December 2024, base metals prices on the London Metal Exchange (LME) showed mixed trends, with nickel decreasing by 1.15% w-o-w. Meanwhile, LME warehouse stocks also exhibited negative trends, except for copper, which increased by 1.12% w-o-w.

On the LME, three-month aluminium futures remained largely stable at $2,605/tonne (t), while nickel prices decreased by 1.15% w-o-w to $15,862/t. Copper prices were at $9,052/t, down by 0.77% w-o-w, while zinc increased by 0.13% w-o-w to $3,075/t. Lead dropped by 2.95% w-o-w to $2,010/t.

Aluminium

Imported, domestic aluminium prices range-bound

Imported aluminium scrap prices in India remained range-bound w-o-w, with variations by up to 2%, amid slow trading activity, which has caused market uncertainty towards the year-end. 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 was at $2,110/t, largely stable w-o-w, both CFR west coast, India.

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

ADC12 alloyed ingot OEM-grade prices drop to 10-month low in south India

Prices of aluminium ADC12 alloyed ingots declined m-o-m across south India, with BigMint's benchmark monthly assessment placing the OEM-approved grade at a ten-month low of INR 208,000/t in Chennai, levels last seen in February 2024. This marks a fall of INR 2,000/t m-o-m, which could be attributed to continued sluggish demand in the automotive sector and a weakened export market.

Copper

Imported copper prices show uptrend, domestic prices stable w-o-w

Domestic copper armature prices were assessed at INR 740,000/t ex-Delhi, stable w-o-w, while imported copper motors mix scrap stood at $1,150/t CFR Mundra, up by $20/t w-o-w.

Secondary continuously cast rods (CCR) (99.90%) were assessed at INR 788,000/t ex-Delhi, largely stable w-o-w. Meanwhile, primary CCR prices increased by 1% w-o-w to INR 812,000/t.

Domestic copper demand increased by 13% y-o-y in FY'24, to 1.71 million tonnes (mnt) from 1.52 mnt in FY'23, according to the International Copper Association of India's annual study. The data highlights that growth in key sectors boosted the country's copper demand in FY'24.

Zinc stable

Domestic zinc ingot prices stood at INR 297,000/t, largely stable as compared to last week's INR 298,000/t. Hindustan Zinc (HZL) raised zinc ingot prices by INR 2,300/t to INR 311,600/t ex-Jodhpur.

Lead tags down

Domestic lead primary ingots stood at INR 193,000/t and remelted ingots at INR 176,000/t, down by up to INR 2,000/t compared to last week. Additionally, HZL's lead ingot prices were reduced by INR 1,900/t ($22/t) to INR 206,700/t ex-Jodhpur.

Chinese base metals market overview

In the week ending 13 December, deliverable base metals inventories at the warehouses registered with the Shanghai Futures Exchanges (SHFE) displayed a mixed trend, with lead showing an inflow of 8.3% w-o-w to 52,250 t, according to the exchange's weekly stock report.

Market updates

JSW Group explores expansion into copper, aluminium

JSW Group, India's largest steelmaker, is considering expansion into copper and aluminium. CEO Jayant Acharya stated that the company is assessing the financial viability of this move with consultants, though no final decisions have been made yet. He added that the group remains open to diversifying into alternative metals for future growth opportunities.

India gets caught in US-China trade crossfire

India is grappling with increased Chinese imports, especially steel, amid a looming US-China trade war. As Chinese goods flood the Indian market, local manufacturers are pushing for safeguard tariffs. If the US imposes higher tariffs on China, India may face a surge in imports across industries such as electronics, machinery, and chemicals, worsening its trade deficit with China.