Weekly round-up: Global trends reflect in India's base metals market; aluminium stocks surge by 14%

This week, the non-ferrous metals market on the London Metal Exchange (LME) depicted uptrend barring nickel and lead. On the other hand, the domestic Indian market displayed a similar trend, with trading activities at moderate levels throughout the week.

Three-month aluminium futures on the LME inched up by 3.5% to $2,326/tonne (t), while nickel settled at $16,509/t (down 3.7%). Copper prices were at $8,573/t, while zinc gained by 2.7% to 2,601/t and lead prices were down by 0.9% to $2,063/t. The stocks at LME-registered warehouses witnessed inflow w-o-w by up to 14.4% barring copper.

Notably, aluminium stocks at LME warehouses surged over 14% w-o-w, reaching a 2.5-month high, signalling an oversupply of the metal amid slowing demand in China and Europe.

The non-ferrous metals market in India reflected the patterns observed in the global market. Prices of imported aluminium and domestic scrap remained on the higher side. Copper prices showed a slight increase, whereas zinc saw modest gains and lead prices experienced marginal declines.

On the other hand, both domestic and imported trade activities persisted at a sluggish pace throughout the week, primarily due to the year-end slowdown. Sources suggested that the market is expected to attain more clarity after mid-January 2024.

Aluminium

During the week, primary aluminium ingot (P1020) prices rose slightly in the spot market, followed by price hikes by major primary players.

ADC12 alloy ingot spot prices in India rose by INR 2,000/t to INR 183,000/t, tracking higher Tense scrap prices. Meanwhile, three-month aluminum futures increased to $2,300/t levels, with Tense scrap prices seeing a rise to INR 154,000/t w-o-w. The ADC12 monthly settlement for January 2024 is INR 191,000/t.

The Indian aluminium scrap market witnessed a notable price increase due to surging LME futures. Limited transactions in the western region, ahead of Christmas, impacted major trade participants. SteelMint reported Zorba 95-5, UK-origin, at $1,955/t, up by $55/t. Middle East Tense scrap prices rose to $1,575/t, signalling a rebound. In China, silicon metals face challenges, with rising electricity costs and halted production affecting prices.

Copper

Copper prices in the domestic market increased by up to 1.5% w-o-w. Buyers seem to be stockpiling materials ahead of the new year, but there is a bid-offer disparity for imported copper motor mix scrap of US origin, with a price set at $1,130/t CIF Mundra.

MCX copper prices saw a 1% w-o-w increase, gaining from INR 725,000/t to INR 732,000/t. Similarly, copper prices on the COMEX market experienced a 0.2% rise, increasing from $8,557/t to $8,578/t compared to the previous week.

Zinc and lead

India's zinc and lead prices surged by 3.5% w-o-w, driven by HZL's price adjustments. HZL raised zinc prices by 5.1%. Domestic zinc prices climbed by 2.1% to INR 230,000/t, while remelted lead ingot saw a 0.2% decrease to INR 178,000/t, both ex-Delhi.

Imported zinc diecast (5%) from the Middle East rose by 2.6% to $1,960/t, CIF Mundra, aligning with a rise in LME futures w-o-w.

Recent deals

• Recently, 80 t of aluminium taint tabor HRB from the US was traded at $1,660/t, CIF Mundra.
  
  
• A deal for 23 t of silicon 553 originating from China was heard at $2000/t, CIF Mundra.
  
  
• Around 20 t of aluminium wheel scrap was sold at INR 196,000/t, DAP Chennai.
  
  
• A recent deal for 18 t of US-origin aluminium talk was traded at 3M (53%), CIF West Coast, India.
  
  

Global updates

• Global refined copper production increased by about 5.5% during January-October 2023.
  
  
• USA's crude bauxite exports surged by 168% in H1 2023; Imports continue to decline.
  
  
• UK car production in November surged nearly 15%, reaching 91,923 units.