- LME nickel rises as Indonesia proposes 40% output cut
- Imported aluminium scrap drops 2.5% w-o-w in India
At the close of trading on Friday, 10 January 2025, base metals prices on the London Metal Exchange (LME) showed positive trends, with nickel increasing by 3.62% w-o-w. Meanwhile, LME warehouse stocks exhibited negative trends, except for nickel, which showed a gain of 1.20% w-o-w.
The 3.62% w-o-w rise in LME nickel prices was primarily due to the Indonesian government’s proposal to cut nickel mine quotas by 40%, which could have a substantial impact on global supply. The government’s cuts could reduce Indonesia’s nickel production from 272 million tonnes (mnt) in 2024 to as low as 150 mnt in 2025.
On the LME, three-month aluminium stood at $2,571/tonne (t), up by 3.13%, while nickel prices decreased by 1.31% w-o-w to $15,111/t. Copper prices were at $9,091/t, up by 2.42% w-o-w, while zinc decreased by 0.69% w-o-w to $2,868/t. Lead inched up by 2.70% w-o-w to $1,975/t.
Aluminium
Aluminium scrap drops: Imported aluminium scrap prices in India dropped by up to 2.5% w-o-w, mirroring a decline in LME levels. However, certain scrap grades held firm w-o-w amid reports of supply shortages.
BigMint’s benchmark assessment for Tense scrap originating from the UAE stood at $1,790/t, falling by $10/t w-o-w, while Zorba 95/5 from the UK was at $2,060/t, down by $50/t w-o-w, both CFR west coast of India.
Domestic aluminium Tense scrap prices remained stable w-o-w, with ex-Delhi at INR 174,000/t and ex-Chennai at INR 175,000/t.
ADC12 OEM prices stable: Prices of OEM aluminium ADC12 alloyed ingots remained range-bound m-o-m in both north and south India. This price stability was mainly driven by continued weak demand in the automotive sector.
BigMint’s monthly assessments for the ADC12 (OEM grade) stood at INR 208,000/t in Delhi and INR 208,000/t in Chennai, largely stable m-o-m.
Non-OEM ADC12 prices edge down: BigMint’s weekly assessments for ADC12 (non-OEM) grade stood at INR 202,000/t in Delhi and INR 203,000/t in Chennai, down by INR 2,000/t w-o-w.
Copper
Imported copper stable: Imported copper motors mix scrap originating from the US stood at $1,130/t CFR Mundra, stable w-o-w.
Domestic copper tags fluctuate: Domestic copper armature prices were assessed at INR 750,000/t ex-Delhi, up by 0.9% w-o-w, and secondary continuously cast rods (CCR) (99.90%) were assessed at INR 788,000/t ex-Delhi, down by 0.6%. Meanwhile, primary CCR prices stood at INR 800,000/t, dropping by 2% w-o-w.
Zinc
Domestic zinc ingot prices stood at INR 280,500/t, a drop of 1.9% as compared to last week. Hindustan Zinc (HZL) cut zinc ingot prices by 4.5% w-o-w to INR 291,300/t ex-Jodhpur.
Lead
Domestic lead primary ingots stood at INR 190,000/t, stable w-o-w, and re-melted ingots at INR 171,000/t, down 1.2% compared to last week. Additionally, HZL’s lead ingot prices remained range-bound w-o-w at INR 197,200 /t ex-Jodhpur.
Chinese base metals market overview
In the week ending 9 January 2025, deliverable base metals inventories at warehouses registered with the Shanghai Futures Exchanges (SHFE) displayed a downtrend, with zinc showing an outflow of 10.8% w-o-w to 21,334 t, according to the exchange’s weekly stock report.
Market updates
Korea Zinc in talks to supply antimony to US buyers
Korea Zinc is in preliminary discussions with US entities to supply antimony following China’s export ban to the US, which disrupted the market. The company, the world’s largest zinc smelter, also produces antimony and aims for long-term contracts, as prices of the commodity are expected to hit record highs due to the ban.
Copper prices rise amid optimism over China’s economic growth
Copper prices surged in early 2025 to a three-week high, driven by strong demand in China amid ongoing stimulus efforts to boost the economy. The metal’s price rally was supported by supply constraints and the global shift towards green energy. However, the potential impact of Trump’s tariffs may limit further gains later in the year.
Leave a Reply