Base metals prices in both the global and domestic markets have fallen from March-April peaks. The fall in metal demand is majorly led by a deceleration of China’s economy, the biggest consumer and producer of all major metals, due to strict COVID-19 curbs.
LME copper prices down, stocks fall sharply
Copper cash prices and the 3-month contract price showed a downward trend by nearly $320/t towards the end of this month as against the Apr-end period. On the other hand, stocks fluctuated throughout the month, and fell 4% or 6,850 t to 149,200 t on 31 May as against the Apr-end period.
SteelMint’s assessment for copper armature scrap stood at INR 713,000/t ($9,198/t), exy-Delhi, fell INR 13,000/t ($168/t) m-o-m today.
LME aluminium prices down, stocks fall sharply
Aluminium cash prices and the three-month contract price showed a downward trend by $223/t and $265/t to $2816/t and $2787/t towards the end of this month as against last month period.
On the other hand, the stocks in LME registered warehouses fell throughout the month, and showed a downfall of 20% or equivalent to 111,225 t to 458,875 t on 31 May as against Apr-end period.
SteelMint’s assessment for domestic aluminium tense scrap stood at INR 164,000/t ($2,116/t) today, down by INR 3,000/t ($39/t) m-o-m , exy-Delhi.
LME nickel cash prices dip, stocks fall marginally
The LME nickel cash prices and 3-month contract price dipped 12% to $28,700/t and $28,392/t m-o-m on 31 may as compared to Apr-end period whereas stocks fluctuated throughout the month, and fell 1,134 t, m-o-m, to 71,718 t yesterday.
SteelMint’s assessment of stainless-steel grade 304 scrap was recorded at INR 153,000/t ($1,973/t) yesterday, down by around INR 28,000/t ($361/t) m-o-m.
Zinc LME prices and stocks on negative trend
Zinc cash prices and 3-month contract prices fluctuated throughout the month and showed a downward trend by $234/t and $193/t to $3,978/t and $3,914/t towards the end of this month as against last Apr’22 trading day. The stocks of zinc fell 11% m-o-m to 84,675 t yesterday.
SteelMint’s assessment for special high grade (SHG) zinc ingots witnessed downward trend by around INR 6,000/t ($77/t) to INR 343,000/t ($4,425/t) on monthly basis, exw-Delhi today.
Outlook
A sharp decline in global prices of base metals since April may hit the margins of domestic producers, given the import-parity pricing they follow, but will let user industries, including auto and white goods makers, cut input costs and pass on the gains wholly or partly to consumers. However, the fall of the rupee against the US dollar could inflate import costs, to some extent retaining the pricing power of domestic metal companies, particularly steelmakers.
Leave a Reply