Base metal prices fall amid rising dollar

Domestic base metals prices witnessed negative trends w-o-w. Prices of most base metals moved lower on the week, amid slowing global growth and rising interest rates.

Most metals closed with losses as the dollar was still high amid a hawkish stance from the US central bank, the Federal Reserve, that the US needs to keep interest rates higher for a while till inflation can be controlled.

On the other hand, the prices on LME showed mixed trends, leading to uncertainity in the market.

For the last few days, we have been hearing that the Indian Rupee (INR) is depreciating heavily, hitting an all-time low of 82 to the US dollar this week. The depreciating rupee influences the domestic economy as well as the overall market.

However, we should note that the world’s other leading currencies have also heavily depreciated against the dollar.

• Aluminium scrap import prices fall

Imported aluminium scrap prices from the UK and Middle East decreased in the range of $40-150/t this week.

Morover, on 27 September, the price of US-origin imported aluminum talk scrap decreased by $230/t to $3,9810/t CFR Nhava Sheva. Import scrap prices have been drifting down following exchange futures as well as spot prices, SteelMint notes.

Domestic aluminium tense scrap prices fell 2.10% to INR 140,000/t exy-Delhi.

• Domestic copper prices fall

Domestic copper armature scrap prices fell marginally by 1.44% to INR 602,000/t ($7,374/t) w-o-w, The dominance of the dollar has hit sentiments across commoditie and copper has not been spared in this move, SteelMint understands.

Prices of secondary and primary wire rods also fell w-o-w by up to 1.40% to INR 646,000/t ($7,912/t) and INR 663,000/t ($8,121/t) at yesterday’s closing.

• Zinc prices fall

Domestic special high-grade (SHG) zinc ingot prices fell 2.44% to INR 280,000/t ($3,430/t) w-o-w amid limited trade observed in the market,  Morover, the LME’s 3-month zinc contract prices fell 1.33% this week.

• Lead prices marginally down

Domestic remelted lead ingot prices went down marginally to INR 174,000/t ($2,131/t), whereas refined lead ingot prices were recorded at INR 186,000/t ($2,278/t) exw-Delhi on 30 sept, a slight decline  of 2.41% w-o-w.