Weekly round-up: Global, domestic base metals prices witness uptrend except lead
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Base metals prices on the London Metal Exchange (LME) remained on positive trajectory barring lead for the week closing 1 March 2024. Notably, aluminium prices rose 2.98% w-o-w. Meanwhile, stocks at LME registered warehouses witnessed an uptrend except copper.
On the other hand, nickel stocks saw a notable increase of over 4% to 73,788 t.
On the LME, three-month aluminium futures increased by 2.98% to $2,245/t, while nickel settled at $17,662/t (up 0.95%). Copper prices were at $8,503/t (down 0.75%), zinc gained by 0.50% to $2,417/t and lead prices fell by 2.91% to $2,035/t.
In India, imported and domestic aluminium scrap prices trended upward. Meanwhile, on the primary market P1020 prices moved up. Copper and zinc prices remained positive while lead prices remained almost stable.
Aluminium
During the week, primary aluminium ingot (P1020) prices in the spot market dropped. Aluminium ADC12 alloy ingot (automobile equivalent) spot prices remain stable at INR 204,000/t w-o-w exw Delhi, excluding GST. This stability is observed despite an increase in local Tense scrap prices in both north and south India where shortages are reported, according to BigMint assessment.
The Indian markets has currently experienced a rise in prices for imported aluminum scrap, attributed to various factors. This includes the upswing in aluminum LME levels, shortages of material both domestically and internationally, and the escalating freight rates.
In the domestic space, scarcity of raw materials, particularly tense scrap, kept prices on the higher side. Tense scrap prices are at INR 174,000/t exy-Delhi (excluding GST).
Copper
Domestic copper prices increased w-o-w, with armature scrap at INR 687,000/t and secondary rods at INR 724,000/t, ex-Delhi. Positive demand for finished material with some trades of CCR in local markets has led to price rise this week.
Copper cathode prices on the MCX remain almost stable w-o-w at INR 728,500/t for the March contract.
In the imported segment, copper prices in India fell following futures in LME. Middle Eastern brass honey fell $55/t to $5,430/t. Bid-offer disparities persisted due to upto $100/t decrease in three-month LME contract prices as of the scheduled assessment time.
Zinc and lead
Zinc prices in Delhi rose by 0.5% due to a rise by HZL. Re-melted lead ingot prices fell marginally to INR 176,000/t ex-Delhi.
Middle East zinc diecast saw a 1.3% increase to $1,955/t CFR Mundra, driven by a 1% gain in 3M zinc futures.
In the imported market, zinc diecast (5%) originating from the Middle East rose by 1.3% to $1,955/t CFR Mundra, mirroring a 2.74% weekly increase in LME futures prices.
Global updates
According to the latest data from the International Aluminium Institute (IAI), the alumina production in Jan'24 remained largely stable, reaching 12.05 mnt in Jan'24 from 12.07 mnt, a month ago. In contrast, it increased by 3.9% y-o-y from 11.6 mnt in Jan'23.
Global aluminium producers have proposed premiums of $145-$155/t for April-June shipments to Japanese buyers, a 61%-72% increase from the current quarter. Japan's acceptance of these premiums sets the benchmark for Asia's primary metal market. In the previous quarter, premiums were $90/t, down 7%.
