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

At the end of trading on Friday, 20 April 2024, prices for most base metals on the London Metal Exchange experienced notable increases.

On the LME, three-month aluminium futures increased by 7% to $2,669/t, while nickel settled at $19,326/t (up 8%). Copper prices were at $9,876/t, zinc rose 1% to $2,852/t and lead prices gained by 2% to $2,218/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

Imported aluminium scrap prices in India experienced a notable rise for the week, supported by the upward trend in LME futures prices. Additionally, aluminium prices on commodity exchange market saw a rise in the week due to the US' and UK's sanctions on Russian metals, targeting revenue from exports, notably Russia which is one of the major producers in the world.

Tense scrap from the UAE rose by $65/t to reach $1,965/t, while zorba 95/5, of UK origin, moved up by $30/t settling at $2,100/t CFR Mundra.

As per BigMint assessment, spot prices for aluminium ADC12 alloy ingot experienced a slight uptick of INR 3,000/t, reaching INR 216,000/t w-o-w exw Delhi NCR. Notably, tense Ex-Delhi reached INR 186,000/t, marking a weekly increase of INR 3,000/t. The scrap-to-ADC12 spread continued to dwindle due to the prevalence of cheaper imports from FTA countries.

Copper

Domestic copper armature prices have been reported at INR 795,000/t, exy-Delhi, rising w-o-w, reflecting an increase of 7%. Notably copper prices in the futures market LME have hit almost 2 years high levels i.e. up over $9,870/t,

Prices of secondary CCR rods (99%) were at INR 845,000/t ex Delhi, rising by 6.6% w-o-w. Meanwhile, primary CC rods were observed at INR 860,000/t, up 3.7% w-o-w.

Imported scrap prices have increased by up to 1.3% w-o-w. Notably, brass honey scrap from the Middle East has risen by $75/t to $5,970/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 256,000/t, up 5%. Re-melted lead prices stood at INR 183,000/t, up by 0.9%. Middle East zinc diecast (5%) prices remain firm at $2,070/t CFR Mundra.

Global updates

Hydro has allocated NOK 240 million towards the construction of a specialised recycling facility situated near its primary aluminum plant in Hoyanger. This investment aims to utilise recycled aluminum to further reduce the carbon footprint of Hydro's casting products. It marks Norway's first facility of its kind, with an annual processing capacity of 36,000 t of post-consumer aluminum scrap.