Weekly round-up: Indian base metal prices remain range-bound ahead of Diwali

The global base metals markets witnessed mixed trends this week as far as LME prices were concerned. Domestic base metals prices witnessed slight fluctuations in the beginning of the week and remained largely stable towards the end.

Three-month aluminium futures on the LME inched down by 1.6% to $2,217/t, while nickel settled at $17,800/t. Copper prices were at $8,147/t, while zinc edged up by 3% to 2,599/t. Lead prices were up by 0.2% to $2,176/t. Meanwhile, LME warehouse stock levels remained on the lower side w-o-w barring lead.

Base metal prices in India stayed range-bound this week. Imported aluminum prices experienced minor fluctuations, and domestic market prices remained stable. Copper prices showed a slight w-o-w increase, while zinc and lead prices saw modest gains.

Trading activities in the local market were limited during the week, mainly attributed to Diwali holidays. According to trade sources, there is an expectation that clarity on price trends will emerge post Diwali.

Aluminium

During the week, primary aluminium ingot (P1020) prices gained slightly as a result of price hikes by major primary players.

Meanwhile, prices of aluminium ADC12 alloy ingots were steady at INR 183,000/t. Prices are stable on decreased demand ahead of approaching holidays.

Mixed sentiments prevailed in the imported aluminium prices this week, with European sellers holding firm due to strong domestic alloy ingot trends. Indian buyers adjusted procurement amid subdued demand and falling alloy ingot prices. Some mills shifted from importing scrap to local traders for immediate payment and liquidity. Meanwhile, a modest rise in demand lifted imported silicon 553 prices.

India's aluminium scrap market prices remained unchanged driven by festive holidays.

Copper

Despite lower buying activity and subdued sentiments leading up to the holiday season, domestic copper prices in India experienced a slight w-o-w increase. Anticipation of an upward movement post Diwali persists, according to industry sources.

In the imported segment, SteelMint's assessment for copper motor scrap from the US recorded a 1% drop, settling at $1,090/t.

Zinc and lead

In India, zinc and lead prices recorded a w-o-w increase, driven by HZL's price revision of up to 4%. Domestic zinc ingots reached INR 232,000/t, indicating a 2% rise.

However, transactions are limited due to weak demand, expected to persist until Diwali. Re-melted lead ingot prices in Delhi were reported at INR 183,500/t. Zinc diecast (5%) from the Middle East was priced at $1,960/t CIF Mundra.

Recent deals

• 22 t of copper CCR (99.91%) was sold at INR 721,000/t, Exw Delhi basis.
  
  
• Around 20 t aluminium wire rod was traded at INR 206,000/t, Exw Delhi.
  
  
• Around 120 t of Australian-origin wheel scrap was traded at LME3M-$50, CIF Chennai.
  
  
• A transaction for 22 t of brass honey (1%) was traded for 3M(63.5%), CIF West Coast India.
  
  
• 25 t of Australia origin lead scrap was booked for 3M(94%), CIF Chennai.
  
  

Global updates

• In October, Japan's services sector expansion slowed to its lowest point in 2023, with the au Jibun Bank Service Purchasing Managers' Index (PMI) dropping to 51.6 from 53.8 in September.
  
  
• In September 2023, Malaysia's Industrial Production Index (IPI) decreased by 0.5% compared to the same month in the previous year.
  
  
• Europe's largest copper smelter, Aurubis, announced plans to invest around $700 million in a new smelter for complex recycling materials in North America.