Weekly round-up: India's base metals market aligns with global trend

At the end of trading on Friday, 26 April 2024, prices of most base metals on the London Metal Exchange (LME) experienced notable increases barring aluminium.

On the LME, three-month aluminium futures decreased by 3% to $2,587/t, while nickel settled at $19,400/t (up 0.3%). Copper prices were at $9,995/t, zinc rose 0.2% to $2,859/t and lead prices gained by 0.6% to $2,232/t.

Throughout the week, both domestic and global base metals markets experienced rising trends. Imported aluminium scrap market sustained positive price levels, followed by domestic market despite the drop in LME futures. However, copper, zinc, and lead prices all witnessed a rise.

Aluminium

Imported aluminium scrap prices in India experienced a notable rise for the week amid shortage of scrap availability. Tense scrap from the US rose by $20/t to reach $2,000/t, while zorba 95/5, of UK origin, moved up by $60/t settling at $2,160/t CFR Mundra.

Spot prices of aluminium ADC12 alloy ingot rose by INR 2,000/t to INR 218,000/t w-o-w in Delhi NCR, while tense prices surged by INR 6,000/t to INR 192,000/t ex-Delhi. An Indian auto company increased its ADC12 settlement by INR 5,000/t for May, citing domestic raw material price hikes.

Copper

Domestic copper armature prices surged to INR 809,000/t ex-Delhi, up by 4.1% w-o-w, while LME copper hit a $10,000/t level. Secondary CCR rods rose to INR 863,000/t, with primary CC rods at INR 890,000/t, both up by 4.7% and 5.2% w-o-w, respectively.

Imported scrap prices increased by up to 3.1% w-o-w, driven by supply constraints exacerbated by mine shutdowns and reduced production estimates from major players like First Quantum Minerals and Anglo American.

Zinc, lead

Domestic zinc and lead prices rose this week due to an upward correction in HZL prices. Zinc ingot prices in Delhi rose to INR 260,500/t, up 3%. Re-melted lead prices stood at INR 184,000/t, up by 0.5%. Middle East zinc diecast (5%) prices remained firm at $2,080/t CFR Mundra.

Global updates

According to the latest data from the International Aluminium Institute (IAI), the aluminium production in March, 2024 has increased, reaching 6.07 mnt, marking a 7.2% increase from 5.67 mnt m-o-m.

The International Lead and Zinc Study Group (ILZSG) has announced that the global refined zinc market may experience a surplus of 56,000 t in calendar year 2024 (CY'24).

The International Nickel Study Group (INSG) forecasted a surplus of 109,000 tonnes (t) for 2024, following surpluses of 98,000 and 163,000 t in 2022 and 2023, respectively.