Weekly round-up: Global, domestic base metals prices remain range-bound

At close of trading on Friday, 31 May 2024, prices of base metals on the London Metal Exchange (LME) witnessed mixed trends amid minor fluctuations.

On the LME, three-month aluminium futures fell marginally by 0.3% to $2,652/t, while nickel settled at $19,710/t (down 2.6%). Copper prices were at $10,040/t, zinc fell by 0.5% to $3,041/t and lead prices rose by 0.1% to $2,302/t.

Throughout the week, domestic and global base metals markets experienced marginal fluctuations. Imported and domestic aluminium scrap prices remained largely stable. Meanwhile, copper, zinc and lead prices witnessed marginal declines.

Aluminium

India's primary aluminium producers have increased P1020 primary ingot prices by up to INR 6,750/t which, in turn, has slightly increased the P1020 ingot spot price in Delhi NCR.

Aluminium scrap prices in India held steady, with Taint Tabor at $2,040/t and Tense up by $10/t to $1,970/t. LME aluminium prices remained stable at around $2,700/t. Price disparities led to subdued buying activity, with bids and offers differing, reflecting cautious market sentiment amid global economic uncertainties.

Spot prices for aluminium ADC12 alloy ingots rose marginally to INR 216,000/t, while tense scrap prices increased slightly to INR 188,000/t in Delhi. Despite lower demand and operational challenges, ADC12 prices remained firm supported by improved availability of imported materials and domestic scrap.

Copper

BigMint reported a 1% weekly decrease in domestic copper armature prices to INR 817,000/t ex-Delhi, as LME's 2-year high price levels at over $10,040/t sustained. Secondary CCR rods prices fell by 1.9% to INR 867,000/t, while primary CC rods prices decreased by 3.4% to INR 905,000/t.

In the imported segment, copper motor mix originating from the US witnessed a 3% drop and brass honey (5%) from the UAE also dropped by 0.7% w-o-w amid a marginal correction in LME copper prices.

Zinc, lead

Zinc ingots are at INR 279,000/t, down by 0.8% w-o-w amid a marginal INR 500/t reduction by HZL. Meanwhile, lead ingot prices have remained stable at INR 190,000/t exw-Delhi. Meanwhile, Middle East zinc diecast (5%) prices were at $2,180/t CFR Mundra.

Global update

• China's industrial firms saw a 4.3% profit increase in the first four months, mirroring the first quarter's rise.
  
  
• IMF forecasts China's 2024 growth at 5%, citing strong first quarter, but warns of property crisis risk.
  
  
• China's May manufacturing may remain stable at 50.4, reflecting uncertainty amid property sector woes despite recent economic growth.