Domestic base metals prices saw negative trends this week. Most base metals moved down during the week, while all the base metals contracted by up to 2.28% w-o-w yesterday. Oil prices (WTI) too fell this week up to 7% to $85 per barrel, while brent oil futures fell 6% to $91.63 per barrel w-o-w at the time of reporting.
The oil prices posted a loss this week despite the recent spike after OPEC+ approved a production cut that is expected to reduce oil supply by roughly 1 million bpd, SteelMint reported earlier, following the release of fresh US inflation data. Also, short sell could be the possible reason behind decrease in the prices of oil.
It has been heard that the US administration could put a ban on oil refining in the coming days which could lead to tight oil supply in the market.
The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered at around 113.30, up by 3% against last week, m-o-m it was up by 3% which has put selling pressure on the commodities.
Metals prices fall
- Aluminium scrap import prices fall
Imported aluminium scrap prices from the UK and Middle East decreased in the range of $60-100/t this week. Moreover, on 11 October, the price of the UK-origin imported aluminium zorba (95-5) scrap increased by $40/t to $1,720/t CFR Nhava Sheva.
Domestic aluminium tense scrap prices remained stable w-o-w at INR 140,000/t exy-Delhi.
- Copper scrap prices slightly down
Domestic copper armature scrap prices fell marginally by 0.63% to INR 596,000/t ($7,231/t) w-o-w.
Prices of secondary and primary wire rods were also marginally down by up to 0.37% w-o-w to INR 644,000/t ($7,814/t) and INR 670,000/t ($8,129/t) yesterday.
- Zinc prices down
Domestic special high-grade (SHG) zinc ingot prices fell 2.28% to INR 278,000/t ($3,373/t) w-o-w amid lower trades observed in the market. Moreover, the LME’s 3-month zinc contract prices and spot prices fell by up to 3.30% this week.
- Lead prices slightly up
Domestic remelted lead ingots prices rose slightly by 0.86% to INR 176,000/t ($2,135/t), whereas refined lead ingots prices were recorded at INR 192,000/t ($2,329/t) exw-Delhi on 14 October, a slight increase of 1% w-o-w.
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