Weekly round-up: Indian base metals prices show mixed trend

At the end of trading on Friday, 10 May 2024, prices of most base metals on the London Metal Exchange (LME) experienced volatile levels w-o-w.

On the LME, three-month aluminium futures decreased by 0.86% to $2,529/t, while nickel settled at $18,925/t (down 1.62%). Copper prices were at $10,004/t, zinc rose 0.93% to $2,930/t and lead prices rose by 0.32% to $2,222/t.

Throughout the week, domestic base metals markets experienced a downtrend barring zinc. Imported aluminium scrap market also saw a downtrend. Meanwhile, domestic aluminium and copper prices saw a drop this week. On the other hand, zinc and lead prices moved up slightly.

Aluminium

Aluminum scrap prices in India were slow this week amid a minor dip in LME aluminium prices. The drop in prices was due to relaxation in imported raw material consignments. Currently, purchasing is subdued as buyers have opted to adopt a cautious stance.

Prices of imported aluminium scrap have remained relatively lower without significant upward fluctuation. LME prices have seen a slight decline following several weeks of consistent increases. Additionally, trade activities in the market remained at a slower pace and sellers had to lower their offers to liquidate material.

BigMint's assessment of spot prices of aluminium ADC12 alloy ingot saw a fall by INR 3,000/t, reaching INR 216,000/t w-o-w exw Delhi NCR. Notably, tense scrap prices were at INR 185,000/t ex-Delhi, marking a weekly decrease of INR 2,500/t. The scrap-to-ADC12 spread has increased to INR 31,000/t.

Copper

Domestic copper armature prices have been reported at INR 700/t, exy-Delhi. Prices of secondary CCR rods (99%) were at INR 835,000/t ex Delhi, falling by around 0.6% w-o-w. Meanwhile, primary CC rods were observed at INR 880,000/t, up by 1.1%, however buyers remained cautious and opted a wait-and-watch strategy for prices to move down.

Meanwhile, in the imported segment, copper motors mix from the US was at $1,240/t. Birch cliff from the US was traded at 92% of LME CIF Mundra.

Zinc, lead

Domestic zinc and lead prices saw slight gains w-o-w amid an increase in LME futures as well as price hikes by HZL. Zinc ingot prices in Delhi rose to INR 266,000/t, up 1.5%. Re-melted lead prices stood at INR 188,000/t, ex-Delhi. Meanwhile, Middle East zinc diecast (5%) prices were at $2,060/t CFR Mundra.

Global updates

Total aluminium stocks in London Metal Exchange-registered warehouses rose by 88% to 903,850 t on Thursday, their highest level since January 2022.

India's consumer price inflation likely eased to 4.80% in April, close to March's rate, driven by persistent food inflation.