At the end of trading on Friday, 10 May 2024, prices of most base metals on the London Metal Exchange (LME) experienced volatile levels w-o-w.
On the LME, three-month aluminium futures decreased by 0.86% to $2,529/t, while nickel settled at $18,925/t (down 1.62%). Copper prices were at $10,004/t, zinc rose 0.93% to $2,930/t and lead prices rose by 0.32% to $2,222/t.
Throughout the week, domestic base metals markets experienced a downtrend barring zinc. Imported aluminium scrap market also saw a downtrend. Meanwhile, domestic aluminium and copper prices saw a drop this week. On the other hand, zinc and lead prices moved up slightly.
Aluminium
Aluminum scrap prices in India were slow this week amid a minor dip in LME aluminium prices. The drop in prices was due to relaxation in imported raw material consignments. Currently, purchasing is subdued as buyers have opted to adopt a cautious stance.
Prices of imported aluminium scrap have remained relatively lower without significant upward fluctuation. LME prices have seen a slight decline following several weeks of consistent increases. Additionally, trade activities in the market remained at a slower pace and sellers had to lower their offers to liquidate material.
BigMint’s assessment of spot prices of aluminium ADC12 alloy ingot saw a fall by INR 3,000/t, reaching INR 216,000/t w-o-w exw Delhi NCR. Notably, tense scrap prices were at INR 185,000/t ex-Delhi, marking a weekly decrease of INR 2,500/t. The scrap-to-ADC12 spread has increased to INR 31,000/t.
Copper
Domestic copper armature prices have been reported at INR 700/t, exy-Delhi. Prices of secondary CCR rods (99%) were at INR 835,000/t ex Delhi, falling by around 0.6% w-o-w. Meanwhile, primary CC rods were observed at INR 880,000/t, up by 1.1%, however buyers remained cautious and opted a wait-and-watch strategy for prices to move down.
Meanwhile, in the imported segment, copper motors mix from the US was at $1,240/t. Birch cliff from the US was traded at 92% of LME CIF Mundra.
Zinc, lead
Domestic zinc and lead prices saw slight gains w-o-w amid an increase in LME futures as well as price hikes by HZL. Zinc ingot prices in Delhi rose to INR 266,000/t, up 1.5%. Re-melted lead prices stood at INR 188,000/t, ex-Delhi. Meanwhile, Middle East zinc diecast (5%) prices were at $2,060/t CFR Mundra.
Global updates
Total aluminium stocks in London Metal Exchange-registered warehouses rose by 88% to 903,850 t on Thursday, their highest level since January 2022.
India’s consumer price inflation likely eased to 4.80% in April, close to March’s rate, driven by persistent food inflation.
