Domestic base metals prices showed a downfall this week amid poor demand. On the other hand, decline in LME base metals due to Covid-19 shutdowns in China continuing to put downward pressure on prices.
Aluminium
Aluminium stocks rose by 1,700 t w-o-w at London Metal Exchange (LME)-registered warehouses. The domestic Indian base-metals market is influenced by LME exchange three-month prices and is largely linked with upstream industries where prices showed a downtrend w-o-w, SteelMint assessment shows.
LME aluiminium cash prices were down by 7% w-o-w basis which led to corrections in domestic scrap prices. SteelMint’s price assessment for aluminium tense scrap stood at INR 168,000/t ($2,183/t), falling down by INR 2,000/t ($26/t) w-o-w, exy-Delhi. The market saw low volume of transactions and buyers were expecting offers to correct marginally but sellers were bullish amid global supply tightness and refrained from lowering offers sharply.
Whereas, ADC12 stood at INR 210,000/t ($2,729/t), exw-Faridabad, down by INR 4,000/t ($52/t) on a w-o-w basis. Further, UK origin aluminium scrap import prices decreased in the range of $70-130/t CIF Nhava Sheva on 3-May, as against 26 April 2022.
Notably, the key domestic players Balco and Hindalco lowered aluminium ingots prices followed by drop in LME prices, by INR 16,000/t ($208/t) and INR 11,250/t ($146/t) on the week. The effective price of Balco stands at INR 253,500/t ($3,294/t)and hindalco’s price is at INR 256,000/t ($3,327/t), steelmint understands.
Nickel
LME 3-month nickel prices drifted down around 5% this week which had major impact on domestic finished and scrap prices of stainless steel.
SteelMint’s assessment of stainless-steel grade 304 scrap was recorded at INR 180,000/t ($2,339/t), down INR 4,000/t ($52/t) w-o-w, and grade 316 scrap at INR 280,000/t ($3,638/t), down by INR 2,000/t ($26/t) w-o-w, exy-Delhi.
Copper
Copper prices, in terms of both cash and three-month contract showed downtrend. Notably LME copper prices touched 4-month low this week since the data maintained with SteelMint.
However, copper inventory was recorded at 170,025 t, up sharply by 13,975 t from 156,050 t last week’s closing level.
The rising inventories and COVID-19 lockdowns in top metals consumer China weighed on demand prospects for the red metal.
SteelMint’s assessment for copper armature scrap exy-Delhi stood at INR 726,000/t ($9,433/t), down INR 19,000/t ($247/t) w-o-w.
Zinc
LME zinc prices, in terms of both cash and three-month contract showed downtrend this week, stocks were also down by almost 1,000 t w-o-w but at the end of yesterday’s closing stocks rose d-o-d by 1,200 t, SteelMint learnt.
Zinc special high grade (SHG) ingots prices witnessed a correction by around 7% to INR 345,000/t ($4,483/t), exy-Delhi on 6 May 2022 w-o-w.
The drop in LME prices dragged down domestic Indian zinc prices. The market saw very few buying inquiries which also resulted in a fall in prices.
In addition
The London Metal Exchange (LME) said on Wednesday it had stopped allowing Russian-produced lead into its warehouses following European Union sanctions on the country’s products, effectively shutting Russian lead out of the world’s biggest metals market, Steelmint learned from sources. The LME said in a statement: “There are currently no lead inventories of Russian origin in approved warehouses”.
.jpg)
Leave a Reply