Weekly round-up: India's base metals prices drop w-o-w barring zinc, lead
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At the end of trading on Friday, 3 May 2024, prices of most base metals on the London Metal Exchange (LME) experienced notable decreases barring zinc.
On the LME, three-month aluminium futures decreased by 1.3% to $2,551/t, while nickel settled at $19,237/t (down 0.84%). Copper prices were at $9,910/t, zinc rose 1.54% to $2,903/t and lead prices dipped by 0.76% to $2,215/t.
Throughout the week, both domestic and global base metals markets experienced downtrend barring zinc. Imported aluminium scrap market remained range-bound. Meanwhile, domestic aluminium and copper market prices saw a drop for the week. On the other hand, zinc and lead market prices remained firm.
Aluminium
Aluminum scrap prices in India held steady this week despite a minor dip in LME aluminium prices. The stability in prices was influenced by ongoing material shortages. Currently, purchasing in the market is subdued as buyers opted for a cautious stance to observe developments.
BigMint's assessment for spot prices of aluminium ADC12 alloy ingot saw a slight uptick by INR 1,000/t, reaching INR 219,000/t w-o-w exw Delhi NCR. Notably, tense scrap prices were at INR 187,000/t ex-Delhi, marking a weekly decrease of INR 5,000/t. The scrap-to-ADC12 spread has increased to INR 32,000/t.
Copper
Domestic copper armature prices have been reported at INR 785,000/t, exy-Delhi. Prices of secondary CCR rods (99%) were at INR 830,000/t ex Delhi, falling by around 3% w-o-w. Meanwhile, primary CC rods were observed at INR 857,000/t, down by 2.6% as buyers remained cautious and opted a wait-and-watch strategy for prices to move further down.
Meanwhile, in the imported segment, copper motors mix from the US was at $1,290/t. Birch cliff from the US was traded at 92% of LME CIF Mundra.
Zinc, lead
Global updates
According to Ministry of Mines, India's primary aluminium production hit a record high, reaching 41.59 mnt, up 2.1%.
Nyrstar's Budel zinc smelter in the Netherlands resumed operations amid improved market conditions. Zinc market buoyed by investment influx.
LME mandated aluminium producers are going to submit emissions data by March 2025, aligning with Europe's CBAM.
