The global base metals market saw positive trends prevailing, with prices moving up by 14%, especially nickel followed by aluminium which rose 6%, considering LME’s three-month price trend on a weekly basis, SteelMint data shows.
The key factor behind the price recovery was improvement in sentiments owing to strengthening commodity prices in different parts of the world.
Another major factor was weakening inventory levels at registered LME warehouses due to lower operational utilisation in Europe amid higher energy prices, although oil prices fell slightly due to resumption of supplies from Libya.
Further, central banks in developed countries like the European Central Bank (ECB) were supposed to raise 0.25 basis points but the actual hike was 0.5 basis points to tame inflation.
The major established as well as developing currencies saw fluctuation impacting the international trade scenario.
The supportive measures taken by central banks pushed base metal prices higher on a weekly basis.
In the context of the Indian market, weekly base metal prices recovered a bit except for stainless steel scrap but healthy transactions are yet to be seen.
Aluminium scrap import prices drop
- All imported aluminium scrap (UK and Middle East-origin) prices fell this week in the range of $20-40/t. However, UK-origin imported aluminium wheel scrap prices rose by $20/t to $2,340/t CFR Nhava Sheva on 19 July.
- LME aluminium three-month contract prices were up 5.6% to $2,457/t on 22 July compared to 8 July.
Domestic aluminium prices rangebound
Domestic aluminium scrap prices remained rangebound throughout the week amid limited trade observed in the market. Aluminium tense scrap prices were recorded at INR 149,000/t ($1,866/t) exy Delhi on 22 July.
Nickel downtrend continues in domestic market
LME three-month nickel contract prices rose by 14.12% to $22,122/t on 22 July as against $19,385/t on 15 July.
Despite the rise in exchange prices, the domestic market remained weak in the absence of major mills. Market participants are expecting further correction in stainless steel prices due to muted demand.
Domestic 304 grade stainless steel scrap prices were down 8% to INR 114,000/t ($1,428/t) exy Delhi on 21 July. The prices of 304 grade stainless steel HRC was recorded at INR 236,000/t ($2,956/t) exw Mumbai on 19 July.
Copper prices edge up
Domestic copper armature scrap prices rose 2.2% to INR 597,000/t ($7,477/t) exy Delhi on 22 July.
Prices of copper primary and secondary were up by 0.3% and 1.4% on week to INR 645,000/t ($8,079/t) and INR 637,000/t ($7,978/t), respectively, on exw Delhi basis.
The three-month copper contract prices on LME rose by 3.6% to $7,452/t on 22 July.
Zinc LME prices rise, domestic prices stable
Domestic special high-grade (SHG) zinc ingots prices fell marginally by 0.2% w-o-w to INR 280,000/t ($3,507/t) exw Delhi on 22 July.
LME three-month zinc contract prices showed a positive trend this week, rising by 2.6% to $2,992/t on 22July as against $2,915/t on 15 July.
Lead prices inch up
Domestic remelted lead ingot prices showed stability this week and remained at INR 174,000/t ($2,179/t) exw-Delhi on 22 July.
Prices of primary lead ingots were recorded at INR 186,000/t ($2,330/t) exw Delhi, up marginally by 0.5%.
The LME three-month lead contract prices inched up by nearly 4% from 15 July to $2,017/t on 22 July.
Leave a Reply