Domestic base metals prices saw positive trends this week. Most base metals prices moved up during the week, while all the non-ferrous metals gained by up to 2% w-o-w yesterday.
The domestic market have shown positive signs as market participants returned after the festive season signalling a rise in prices. However, trades are yet to resume fully.
Oil prices posted gains this week. WTI went up to $89 per barrel from $84 levels last week and brent crude was up to $96 per barrel after prices reached $90 per barrel last week. The major factor behind rise in prices was the OPEC+ production cut which is expected to reduce oil supply by roughly 2 million bpd, SteelMint notes.
However, the Biden administration has recently announced that the US is putting the final 15 million barrels on the market from a record release of strategic oil reserves, with more releases possible if energy prices spike.
The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered around 110.67, down 2% against last week.
In the domestic market, aluminium scrap prices were stable, especially tense scrap.
Firm scrap prices could be attributed to the recent price hike announcement of ADC12 alloy ingot by the largest automobile manufacturer i:e; Maruti Suzuki, which was increased by INR 2,000/t to INR 195,000/t for September.
Market participants expect that the price announcement should be lower than the previous month amid dull sentiments but rising auto sales lent support to the price hike.
Metals prices
Aluminium prices stable
Domestic aluminium tense scrap prices remained stable w-o-w at INR 140,000/t exy-Delhi. Buying enquiries were muted as participants have not yet returned from the Diwali holidays, trade channels informed.
- Copper scrap prices rise
Domestic copper armature scrap prices rise marginally by 1.7% to INR 595,000/t ($7,231/t) w-o-w.
Prices of secondary and primary wire rods were also marginally up by up to 1.7% w-o-w to INR 645,000/t ($7,838/t) and INR 673,000/t ($8,178/t) yesterday.
- Zinc prices rise despite drop in futures
Domestic special high-grade (SHG) zinc ingot prices rise 1.5% to INR 278,000/t ($3,378/t) w-o-w amid resumed trades observed in the market. Moreover, the LME’s 3-month zinc contract prices and spot prices fell by up to 4% this week.
- Lead prices are almost stable
Domestic remelted lead ingots prices remained stable at INR 176,000/t ($2,138/t), whereas refined lead ingots prices were recorded at INR 189,000/t ($2,296/t) exw-Delhi on 28 October, a slight decrease of 0.8% w-o-w.
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