Weekly round-up: Non-ferrous scrap prices continue to head south

Non-ferrous metals prices on the London Metal Exchange (LME) fell up to 3.9% w-o-w. The dollar index, which measures the currency's value against a basket of six different currencies, was at 103.86, down 0.7% from last week.

The exchange market continued the downslide following US banking crisis which injected uncertainty into the markets.

China semi-finished copper output

China's semi-finished copper output is estimated at 1.69 million tonnes (mnt) in February 2023, up 24.63% m-o-m and 37.28% y-o-y. Operating rates stood at 64.63% in February, up 23.48 percentage points m-o-m and 12.05% y-o-y.

In February, the average operating rate of the semi-finished copper industry rebounded, slightly exceeding expectations mainly due to the better-than-expected operating rates of the copper plate/sheet and strip industries as well as the copper pipe industry.

Subdued Indian market

The Indian non-ferrous metals markets witnessed a period of subdued activity over the past week, as trading remained in standstill before and after the Holi festival. As reduced volumes were traded and spot transactions dried up, prices remained mostly stable or trended lower.

Stocks of all key non-ferrous metals at LME-registered warehouses rose by up to 4.1% w-o-w, although zinc stocks decreased by 1.9%.

Aluminium scrap prices rangebound

Aluminium scrap prices in India remained firm w-o-w. Sources informed that the lack of buying interest during the week resulted in moderate transactions, Notably, the price revisions by the primary players did not affect local scrap prices.

India's imported aluminium scrap market saw weak sentiments prevailing despite inventory at one-month low levels at registered LME warehouses. Furthermore, regular extrusion grade buyers said that they would prefer to wait a while amid volatile global sentiments and are looking to procure domestically.

Aluminium taint tabor of Middle East origin was offered at $1,810/t CFR Nhava Sheva, down $110/t w-o-w and US-origin aluminium tense scrap prices are assessed at $1,720/t CFR Nhava Sheva, down $50/t w-o-w.

Copper scrap prices inch down

Copper armature scrap prices in India declined w-o-w settling at INR 695,000/t ($8,420/t) ex-Delhi. The decrease in prices is mainly due to the slowing down of buying inquiries owing to uncertainity. Consequently, market sentiments were affected resulting in a drop in prices.

Primary wire rods prices fell by 1.3% w-o-w to INR 770,000/t ($9,329/t) and LME stocks edged up by 2,975 t w-o-w.

Zinc prices fall, lead firm

Domestic special high-grade (SHG) zinc ingots prices inched down by 2% w-o-w to INR 265,000/t ($3,210/t) exw-Delhi on falling futures. Prices of domestic re-melted lead ingots and refined lead ingots remained firm.