Weekly round-up: India's non-ferrous metals prices gain w-o-w

Global base metals market witnessed an uptick this week, with prices of all metals on the London Metal Exchange (LME) increasing w-o-w. On the other hand, Indian base metals prices remained on the positive side. Three-month aluminium futures on the LME edged up by 4% to $2,237/t, while nickel increased by 1.4% settling at $21,085/t. Copper prices gained 1.7% to $8,500/t, while zinc rose 4.3% to 2,485/t and lead prices were up by 4% to $2,248/t.

Stock levels on LME warehouses witnessed inflows w-o-w except aluminium. Notably, copper stocks moved up w-o-w to 104,275 t (up 6.9%) from 97,525 t last week.

The Indian base metals market had a positive w-o-w performance, aligning with the global market trends. Prices in the domestic aluminium market increased, while the imported market experienced some price fluctuations. Additionally, the copper, 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 213,500/t exy-Delhi, excluding GST.

The Indian domestic aluminium scrap market prices have gained marginally w-o-w amid rising futures. Nevertheless, buyers are currently proceeding with caution and favouring smaller, modest purchases. Notably, tense scrap prices were settled at INR 155,000/t, while utensil prices reached INR 169,000/t, both ex-works in Delhi (excluding GST). Additionally, reliable sources have indicated that there was a scarcity in domestic scrap materials.

Global aluminium market

Imported aluminum scrap prices in India saw an overall increase of up to 2.7% w-o-w, although certain specific grades witnessed a decline of up to 2.9%. In contrast, the domestic scrap market in the northern region continued to perform positively driven by firm futures.

Copper market

Copper prices in India saw a slight w-o-w increase of up to 1%. Towards the end of the month, consumers made modest purchases in the market. Secondary rod was priced at INR 720,000/t, and copper armature at INR 678,000/t, both ex-Delhi. However, the market remains cautious due to sellers' intentions to raise their offers.

In the imported market segment, prices of copper motor scrap originating from the US were recently assessed at $1,125/t CIF Mundra.

Zinc and lead markets

The local zinc market experienced a slight increase in prices w-o-w, with a rise of 2.4%. This can be attributed to Hindustan Zinc Limited's (HZL) price adjustments. Furthermore, the stability of HZL's lead prices played a role in maintaining market equilibrium. In the imported sector, zinc diecast (5%) from the Middle East was evaluated at $2,020/t CIF Mundra.

Tender updates

• Mahindra & Mahindra Automotive Division Limited, Nashik unit, is set to conduct an auction for approximately 343 t of aluminum scrap on 8 September.
  
  
• The Steel Authority of India Limited, Bokaro Steel Plant, is scheduled to hold an auction for approximately 105 t of zinc dross on 6 September.
  
  

Recent deals

• Recent deal for 400 t of aluminium tense (5%), originating from the US was sold at $1,730/t, out of which CIF Chennai (200 t) and CIF Nhava Sheva (200t).
  
  
• Deal for 100 t of China-origin silicon 553 was concluded for $1,900/t, CIF Chennai.
  
  
• A recent deal of 80 t of copper birch cliff, originating from Africa was concluded at 3M(90%), CIF west coast.
  
  
• A recent deal for 25 t of zinc diecast (2-3%) from Thailand was concluded for $2,230/t, CIF Mundra.
  
  

Macroeconomic developments

• In Q2 2023, U.S. real GDP rose by 2.1%, slightly surpassing the 2.0% growth in Q1.
  
  
• China's producer prices improved for the first time in seven months. The official PMI reached 49.7.
  
  
• China's industrial profits dropped by 6.7% y-o-y in July 2023, marking a seven-month decline due to weak demand.
  
  
• The production index of Japan declined by 2.0% from the prior month (103.6 in adjusted, 105.2 in original).