Weekly round-up: Global, domestic base metals prices diverge w-o-w

At close of trading on Friday, 28 June 2024, prices of base metals on the London Metal Exchange (LME) witnessed mixed trends.

On LME, three-month aluminium futures rose by 1.3% to $2,485/t, while nickel prices settled at $16,960/t. Copper prices were at $9,476/t; zinc rose by 4.8% to $2,919/t and lead prices rose by 0.70% to $2,160/t.

This week, domestic and global base metals markets witnessed a downtrend. Imported and domestic aluminium scrap prices trended lower except zinc and lead.

Aluminium

According to BigMint's assessment, tense scrap prices originating from the Middle East - particularly the UAE - saw a $30/t drop settling at $1,800/t and zorba 95/5 from the UK witnessed a drop of $50/t settling at $2,080/t CFR west coast, India.

Meanwhile, a few grades like US tense 6-7% and UK taint tabor C/S recorded a drop of up to $25/t w-o-w moving down to $1,835/t and $1,780/t CFR west coast, respectively.

India's aluminium scrap arrivals rise 19%

In May, India's aluminium scrap imports rose by 19% compared to the previous month, building on an 5% increase in April, according to provisional data from BigMint.

In May, India's imports of aluminium scrap reached 161,644 t, indicating a slight improvement compared to the previous month's 135,816 t.

According to BigMint's latest assessment, spot prices for aluminium ADC12 alloy ingots (general-application) in Delhi NCR and Chennai decreased by up to INR 1,000-1,500/t w-o-w. In the Delhi NCR region, ADC12 spot prices were assessed at INR 211,000/t ex-Delhi, aligning with a decline in domestic tense scrap prices, which settled at INR 181,000/t ex-Delhi.

Likewise, ADC12 prices in Chennai were reported at INR 212,500/t for immediate payment basis, excluding GST. At the same time, casting scrap prices fell by INR 1,000/t w-o-w, settling at INR 182,500/t ex-Chennai.

Copper

BigMint reported a 2.7% weekly decrease in domestic copper armature prices to INR 758,000/t ex-Delhi, as LME's price levels drifted lower to $9,476/t. Secondary CCR rods prices fell by 3% to INR 805,000/t, while primary CC rods prices decreased by 0.8% to INR 850,000/t.

In the imported segment, copper motor mix originating from the US witnessed a 3.3% drop and brass honey (5%) from the UAE also dropped by 2.9% w-o-w amid correction in LME copper prices.

Zinc, lead

Zinc ingots are at INR 275,000/t, up 2.5% 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 $2,130/t CFR Mundra.