Weekly round-up: India's base metals markets mirror global trends

At the end of trading on Friday, 12 April 2024, prices for most base metals on the London Metal Exchange experienced notable increases, except for the three-month nickel price, which saw a slight decline.

On the LME, three-month aluminium futures increased by 1.8% to $2,494/t, while nickel settled at $17,797/t (down 0.04%). Copper prices were at $9,457/t, zinc rose 7.2% to $2,828/t and lead prices gained by 2.5% to $2,176/t.

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

Aluminium

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

Aluminium ADC12 alloy ingot (automobile equivalent) spot prices stood largely stable at INR 213,000/t w-o-w exw Delhi, excluding GST. Meanwhile, Aluminium ADC12 alloy ingot OEM approved prices rose m-o-m by INR 4,000/t to INR 218,000/t this week.

Imported tense scrap prices from the Middle East, particularly from the UAE, rose by $20/t to $1,900/t. Tense (6-7%) from the US was heard at $1,950/t, up by $20/t. The price for zorba 95-5 from the UK stood at $2,070/t CFR Nhava Sheva.

Copper

Domestic copper armature prices have been reported at INR 749,000/t, exy-Delhi, rising w-o-w, reflecting an increase of 3.4%. Notably copper prices in the futures market LME have hit 22-month high levels i.e. up over $9,500/t,

Prices of secondary CCR rods (99%) were at INR 796,000/t ex Delhi, rising by 3.5% w-o-w. Meanwhile, primary CC rods were observed at INR 835,000/t, up 4.8% w-o-w.

Imported scrap prices have increased by up to 2% w-o-w. Notably, brass honey scrap from the Middle East has risen by $115/t to $5,895/t CFR Mundra.

Zinc, lead

Domestic zinc and lead prices rose this week due to a upward correction in HZL prices. Zinc ingot prices in Delhi rose to INR 250,000/t, up 10%. Re-melted lead prices stood at INR 182,000/t, up by 2.4%. Middle East zinc diecast (5%) prices rose 2.5% at $2,070/t CFR Mundra amid a rise in LME zinc prices.

Global updates

Hydro Ardal inaugurated a new recycling unit, investing NOK 100 million to process 25,000 t of post-consumer aluminium annually.

Chinese metal silicon prices drop due to reduced purchasing interest amid increased use of aluminum alloys and decreased demand for organic silicon, declining by $200/t.

Benchmark zinc smelter treatment charges dropped significantly this year, indicating a tightening in the mine supply chain. Teck Resources will pay Korea Zinc $165/t, down from $274, reflecting mine closures and refined metal surplus.