Weekly round-up: India's non-ferrous metals prices display mixed trends w-o-w

Global base metals market witnessed an uptrend this week, with prices of all metals on the London Metal Exchange (LME) increasing w-o-w except nickel. On the other hand, Indian base metals prices witnessed mixed trends w-o-w.

Three-month aluminium futures on the LME edged up by 0.3% to $2,190/t, while nickel decreased by 0.6% settling at $19,924/t. Copper prices gained by 2% to $8,405/t, while zinc rose by 3.2% to 2,520/t and lead prices were up by 1.5% to $2,261/t.

Stock levels on LME warehouses witnessed fluctuations w-o-w. Notably, zinc stocks moved down w-o-w to 122,625 t (down 14.5%) from 143,425 t last week.

The Indian base metals market displayed mixed trends with slow w-o-w performance. Prices in the domestic aluminium market increased except aluminium alloy ingot, while the imported market experienced some price fluctuations. Additionally, the copper was down, zinc, and lead markets saw slight price increases w-o-w.

Aluminium market

During the week, primary aluminium ingot (P1020) prices gained as a result of price hikes by major primary players. SteelMint's assessment for aluminium ingot P1020 stood at INR 216,000/t exy-Delhi, excluding GST.

ADC12 aluminium alloy ingot prices remained unchanged w-o-w at INR 190,000-191,000/t exw-Faridabad, excluding GST. Casting scrap availability improved after recent shortages. Aluminium original equipment manufacturers (OEMs) engaged in moderate trading, indicating a stable but not exceptionally strong market.

The prices in the Indian domestic aluminum scrap market stayed relatively stable, with tense prices seeing a slight w-o-w decrease, while other grades experienced slight gains. Nevertheless, buyers are currently proceeding with caution and favouring smaller, modest purchases. Notably, tense scrap prices were settled at INR 156,000/t, while utensil prices reached INR 173,000/t, both ex-works in Delhi (excluding GST).

Global aluminium market

India's imported aluminium scrap market had mixed trends, resulting in moderate trading amid volatile futures. Offers remained stable, mainly from the European Union. Some European/UK recyclers made future bookings, but an upcoming US auto industry strike might lead to a minor downward correction, according to sources. In addition, China's silicon prices into India increased by $120/t w-o-w to $2,030-2,040/t CIF Mundra due to limited supply.

Copper market

Copper prices in India experienced a slight w-o-w decline, with slow transaction activity during the week. Secondary rod was priced at INR 715,000/t, while copper armature was at INR 677,000/t, both ex-Delhi. Buyers are preparing for a price increase due to rising demand leading up to the festive season, according to a trade source.

Zinc and lead markets

The prices of zinc witnessed a rise of 3.2% w-o-w to INR 233,000/t majorly influenced by the HZL's price hike. Lead prices remained stable. In the imported segment, Middle East-origin zinc diecast prices also witnessed slight increase w-o-w as of 12 September 2023.

Recent deals

Around 50 t of aluminium trump from Middle East were sold to India, CIF Chennai, at $1,730/t, recently.

Around 50 t of UK-origin aluminium TT c/s 6-7% were sold at $1,670/t, CIF Chennai.

Around 90 t of silicon 553, China-origin, were traded at $2,020-2,030/t CFR Chennai.

A recent trade consisting 60 t of copper motor large, originating from the US was heard at $1,050/t, CIF west coast, India.

Macroeconomic developments

China's consumer prices edged up by 0.1% y-o-y in August, marking a return to a positive territory after a 0.3% decline in July.

India's industrial output experienced a significant surge of 5.7% in July, surpassing the 3.7% growth recorded in June 2023.

The U.S. Consumer Price Index in August increased by 0.6% on a seasonally adjusted basis, with a 3.7% rise over the past 12 months.