Weekly round-up: Non-ferrous metals prices show positive trends

Non-ferrous metals prices on the London Metal Exchange (LME) saw almost upward movements w-o-w. The market was positive with transactions picking up at a slow pace after the new financial year began.

Stocks of all key non-ferrous metals at LME-registered warehouses fell by up to 21% w-o-w. However, aluminium and lead was up by up to 2.7%.

The dollar index, which measures its value against a basket of six different currencies, was at 101.58, down 0.42% compared to last week.

Domestic market overview

The domestic non-ferrous scrap market was active in this week of March due to positive future exchange markets.

Aluminium scrap prices range-bound

Aluminium scrap prices in the domestic market remained range-bound w-o-w. Sources informed that moderate transactions took place with the financial year starting. Notably, price revisions by primary players did not directly affect local scrap prices.

Although, prices are mostly stable, the aluminium scrap market remained dynamic with certain factors influencing the demand-supply dynamics. Limited deals have been concluded, indicating that there is still some demand in the scrap market.

India's domestic aluminium scrap prices remained rangebound. Tense prices stood at INR 162,000-164,000/t ($1,978-2,006/t) while utensil prices were at INR 173,000/t ($2,116/t).

Imported aluminium market

Prices of imported aluminium scrap in India inched down. This has impacted price movements on global commodity exchanges.

Prices of all grades of imported scrap were down by up to 3.4%. However, a specific grade witnessed a rise by up to 1% as well.

There is limited scrap available in major international markets or export destinations like the US and the UK. Middle East-based sellers are procuring at steeper prices. They were being able to sell at lower prices, which is leading to bid-offer disparities, loss of margins and ultimately they are lifting less material too.

Copper prices inch up

Domestic copper armature scrap prices inched up w-o-w to INR 720,000/t ($8,797/t) ex-Delhi.

The factor that may have contributed to price increase is tight supply in China and Japan. "China and Japan are major producers and consumers of copper. Disruptions in their supply chain can have ripple effects on the global copper market. However, fundamentals of copper at current prices seem strong," a source aware of the matter said.

Three-month copper futures and spot prices on the LME remained slightly increased in recent times. Aluminium futures and spot prices on the LME increased from $8,780/t to $9,060/t in the last trading session, up by $280/t w-o-w.

Zinc prices rangebound, lead firm

Domestic special high-grade (SHG) zinc ingots prices remained rangebound w-o-w to close at INR 258,000/t ($3,158/t) exw-Delhi despite rising futures. Prices of domestic remelted lead ingots and refined lead ingots remained almost firm.