Weekly round-up: Non-ferrous metals prices exhibit mixed trends

During the past week, the global base metals market witnessed a bearish trend, with prices of most metals declining. Three-month aluminum futures dropped 3.2% to $2,204/t, while nickel decreased by 4%, settling at $20,769/t. Copper and zinc also witnessed declines, with copper edging down by 2.5% and zinc prices dipping 2.7% to $2,372/t. In contrast, lead prices showed a slight uptick of 0.8%, reaching $2,139/t.

Stock levels at LME warehouses reflected an overall increase except aluminum. Zinc stocks surged 28.2% w-o-w, rising from 70,775 t to 90,725 t.

The domestic base metals market exhibited mixed trends. Imported aluminum scrap and primary ingot prices rose, while domestic scrap prices remained relatively stable. Copper prices also showed positive trends w-o-w. On the other hand, lead prices remained steady, while zinc prices experienced a minor decline.

Aluminium market

Following the price announcement by Maruti Suzuki India Limited (MSIL), the domestic aluminium alloy ingot market in India saw prices declining. The company set its aluminium ADC12 alloy ingots settlement prices at INR 204,000/t for July.

SteelMint's assessment showed ADC12 aluminium alloy ingots dropping INR 2,500/t w-o-w, with prices at INR 185,000-186,000/t exw-Faridabad, excluding GST.

This price decrease can be attributed to a 7.4% m-o-m decline in automobile sales in June, although sales rose by 5.8% y-o-y.

In the domestic market, aluminium scrap prices remained largely stable, increasing marginally w-o-w. Despite higher prices, traders were reluctant to conclude deals, as they found the prices unworkable. On the other hand, buyers were offering lower bids in response to elevated prices in the market.

Steelmint's assessment for tense scrap stood at INR 154,000-155,000/t, while utensil prices were assessed at INR 171,000/t exy-Delhi, excluding GST.

Global aluminum market

The Indian imported aluminium scrap market witnessed positive trends, as prices of the different grades rose up to $60/t w-o-w, as per SteelMint assessment.

UK-origin Zorba 95-5 scrap was assessed at $1,730/t, up 1.17% w-o-w. Similarly, Middle East-origin tense prices were at $1,560/t (up 2.36%) CIF Nhava Sheva on 18 July.

Copper market

In the domestic copper market, prices moved within a narrow range without significant fluctuations, reflecting a slight decrease w-o-w. However, prices remain relatively high owing to robust demand, with India being the primary buyer of copper. On the other hand, other buyers like South Korea and China seem to be less active in the market at present.

Today, copper prices on the Multi Commodity Exchange (MCX) dropped 2% reaching INR 724,000/t w-o-w. This decline is in line with the slight drop observed in the domestic copper market.

SteelMint's assessment for armature scrap prices stood at INR 686,000/t, down 1.7% w-o-w. Primary rod prices fell by 1.3% to INR 748,000/t exw-Delhi, excluding GST.

Prices of copper motor scrap originating from the US were recently assessed at $1,110/t CIF Mundra, reflecting stability w-o-w.

Domestic zinc and lead markets

India's special high-grade zinc prices dipped w-o-w to INR 220,000/t, with moderate transactions taking place. Hindustan Zinc decreased prices by INR 1,200/t to INR 229,700/t. However, near-term demand is expected to improve.

The lead market is witnessing slow activity with prices remaining range-bound w-o-w. Primary lead ingots were at INR 197,000/t. Re-melted lead ingot prices remained stable at INR 177,000/t.

Global macroeconomic developments

• Global aluminium production dropped by over 3% m-o-m to 5.69 mnt in June.
  
  
• Global copper mine production increased by about 2% to 8.92 mn t y-o-y in January-May'23.
  
  
• US sanctions target Russian copper producer Ural Mining And Metallurgical Company (UMMC) and over 120 entities, individuals, and companies in response to the 2022 invasion of Ukraine.