Weekly round-up: Non-ferrous metals market witnesses mixed trends

The non-ferrous metals market in India is showing mixed pricing trends. While aluminium remains range-bound, certain grades are facing a downtrend due to reduced demand. Copper prices have rebounded, driven by India's active procurement of copper scrap. Lead has experienced slow movement with no notable transactions reported, while the zinc market remains relatively stable.

Domestic aluminium

In the domestic market, aluminium scrap prices experienced a slight w-o-w downturn. Aluminium tense prices dropped 1.2% and utensil prices dipped 1.7%. Trading activity remained limited on weak demand for the material.

SteelMint's assessment for tense scrap stood at INR 154,000/t, while utensil prices were assessed at INR 167,000/t exy-Delhi, excluding GST.

Aluminium alloy ingots market

Global futures volatility has led to limited demand in the domestic market for aluminium alloy ingots, resulting in reduced production activities among small- and medium-scale producers. The decline in LME prices has led to uncertainty, prompting market participants to adopt a cautious approach, while sellers are avoiding transactions which may result in losses.

Global aluminum market

The Indian imported aluminium scrap market saw price volatility, with certain grades witnessing significant contraction of up to $120/t w-o-w. Importers are cautious and, therefore, delaying bookings. Limited offers for aluminium exports in the European region present challenges for scrap buyers.

According to SteelMint's assessment, UK-origin Zorba 95-5 scrap was priced at $1,760/t, up 0.5% w-o-w. However, prices for the US and Middle East-origin aluminium talk declined to $4,480/t and $4,350/t CIF Nhava Sheva, respectively on 4 July.

Copper market

India's copper prices remained largely range-bound, with a slight increase w-o-w supported by the recovery in LME futures. India continues to actively procure copper scrap. Chile's declining copper output is providing support to prices amid lower supply.

SteelMint's assessment for domestic copper armature scrap prices stood at INR 680,000/t, up 1.4% w-o-w. Primary rod prices rose by 1% to INR 740,000/t exw Delhi, excluding GST.

Domestic zinc and lead markets

Domestic special high-grade zinc prices rose w-o-w, while lead prices remained range-bound. Balanced demand-supply dynamics are supporting zinc prices. Hindustan Zinc Limited has hiked prices of zinc ingots by up to INR 1,200/t w-o-w further boosting domestic prices.

Global macroeconomic developments

LME is likely to reduce daily price limits for aluminium and copper contracts from 15% to 12% on 24 July.

EU has included aluminium in the Critical Raw Materials Act for global decarbonisation competitiveness.

US manufacturing activity contracted in June, reaching Covid-19 levels, with layoffs and deflating factory gate prices.

Dollar index

The dollar index showed stability, witnessing a marginal w-o-w drop to 102.27 from the previous week's 102.92. It measures the value of the greenback against a basket of six currencies.

LME price trends

Non-ferrous metals prices on LME witnessed mixed trends this week compared to last week. However, transactions remained low to moderate.

Stocks of all base metals were on the lower side this week, except lead. Notably, copper stocks dropped significantly by almost 14% w-o-w to 62,975 t from 72,975 t.