Weekly round-up: Indian non-ferrous metals prices display mixed trends w-o-w

The global base metals market witnessed downtrend this week as far as prices of metals on the London Metal Exchange (LME) were concerned. On the other hand, Indian base metals prices displayed mixed trends w-o-w.

Three-month aluminium futures on the LME dipped 4.6% to $2,239/t, while nickel decreased by 0.6% settling at $18,582/t. Copper prices fell by 2.7% to $8,046/t, while zinc dropped by 5.3% to 2,509/t. Lead prices were down by 1.3% to $2,143/t.

Stock levels on LME warehouses witnessed uptrend w-o-w, except for zinc stocks which fell 8.4%.

The Indian base metals market exhibited mixed performance this week with marginal fluctuations in prices. The domestic aluminium market witnessed range-bound levels in prices, whereas the imported market remained volatile. Furthermore, copper, zinc and lead prices faced a downturn w-o-w. Meanwhile, the trade activities remained moderate.

Aluminium

During the week, primary aluminium ingot (P1020) prices dropped as a result of price cuts by major primary players. SteelMint's assessment for aluminium ingot P1020 stood at INR 221,000/t exy-Delhi, excluding GST. On the other hand, ADC12 aluminium alloy ingot prices remained unchanged w-o-w at INR 188,000/t exw-Faridabad, excluding GST.

India's aluminium scrap market remained range-bound for the week. Market participants informed that local demand is slow despite moderate availability of material.

India's imported aluminium scrap market is showing mixed sentiment, influenced by factors like US sellers securing future bookings and a temporary holding pattern. There is optimism about increased US buying activity. Transactions between the Middle East and India have risen compared to those involving the UK and the US. The Zorba grade aluminium scrap market faces challenges due to price variations, and buyer caution is amplified by unpredictable LME price fluctuations.

Copper

Domestic copper prices in India experienced a downtrend w-o-w due to sluggish market activity and a sudden decline in future prices. Sellers are withholding stocks in anticipation of higher prices. Secondary rod and copper armature scrap prices dropped by up to 2%, with prices at INR 688,000/t and INR 652,000/t ex-Delhi, respectively.

In the imported scrap segment, prices of copper motor scrap originating from the US were recently assessed at $1,120/t CIF Mundra, remained unchanged w-o-w.

Zinc and Lead

The domestic zinc and lead markets in India witnessed w-o-w price declines exceeding 1%. These changes were primarily influenced by price adjustments by Hindustan Zinc Ltd (HZL) and a slight decrease in demand. In the imported segment, zinc diecast (5%) from the Middle East was assessed at $2,040/t, CIF Mundra.

Tender updates

• Hindustan Aeronautics Limited (HAL) issued a procurement tender for aluminium bar, with a deadline of 21 October, 2023.
  
  
• Kalpataru Project International Limited scheduled a zinc dross auction for 12 October, 2023.
  
  
• Sail-BSP (Steel Authority of India Limited - Bhilai Steel Plant) planned to auction approximately 60 tonnes of aluminium and brass dross on 10 October, 2023.
  
  

Recent deals

• Two containers of US- origin talk were traded at $4,230/t CIF west coast India.
  
  
• A cargo of 70 t UK-origin taint tabor with 1-2% attachment cut and sheared was traded at $1,720/t, CIF west coast India.
  
  
• A cargo of material from the UAE arrived. These comprised about 40 t of tense at $1,590-1,600/t, 40 t of taint tabor at $1,880/t, 40 t extrusion at $2,130/t, 40t and 20 t of talk, at 49.5% of the 3-month LME contract price, CIF west coast India.
  
  
• Around 25t of Vietnam origin zinc remelted ingot was traded $2,450/t, CIF Mundra.
  
  

Global updates

• India's factory activity expanded at a slightly slower pace in September, with the (PMI) falling to 57.5 from 58.6 in August.
  
  
• Australia's central bank, the Reserve Bank of Australia (RBA), decided to keep interest rates unchanged at 4.10% for the fourth consecutive month.
  
  
• The final au Jibun Bank Japan Service PMI dropped to 53.8 from August's 54.3, with slower new business and stalled export orders.