Domestic base metals prices saw positive trends this week, moving up by up to 8%, while all the non-ferrous metals on the LME gained by 13% w-o-w.
Prices jumped after China eased some Covid restrictions, raising hopes of a demand recovery in the world’s second-largest economy.
The domestic market showed positive signs owing to healthy trades observed amid the falling dollar.
The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered around 106.42, down by 5-6 against last week. However, it reached the level of 111 in the middle of the week.
China’s Oct’22 auto sales rise at slowest pace in 5 months
China’s auto sales rose at their slowest pace in five months in October, from a weak base a year ago, as zero-Covid policies kept consumers away from showrooms. The world’s biggest auto market posted sales of 2.51 million units in October, a 6.9% rise from the same month a year ago, according to data from the China Association of automobile manufactures on 10 November.
Indian miners seek higher import tax on metals
India’s top mining industry, Federation of Indian Mineral Industries(FIMI) is seeking higher import taxes on metals, such as zinc, copper and aluminium to halt a tide of cheaper imports, especially from China.
The government should raise import taxes to 10%-15% on several aluminium products including scrap to 10% from 2.5%, on intermediate and finished goods of copper and zinc ingots to 7.5% from 5%, FIMI contends.
Metals prices
- Aluminium prices rise w-o-w
Domestic aluminium tense scrap prices rose 2.9% w-o-w to INR 144,000/t exy-Delhi, on better buying enquiries from manufacturers following better supply to downstream industries.
Meanwhile, aluminium imported tense scrap prices are assessed at $1,700/t, up $60/t CFR Nhava Sheva w-o-w, and US-origin aluminium talk prices were at $4,210/t, a rise of $130/t w-o-w CFR Nhava Sheva.
- Copper prices rise
Domestic copper armature scrap prices rose by 4.4% to INR 632,000/t ($7,846/t) w-o-w exy Delhi. Prices of secondary and primary wire rods also rose up by up to 5.5% w-o-w to INR 682,000/t ($8,467/t) and INR 725,000/t ($9,001/t) exw-Delhi, yesterday.
Prices were boosted by the metal’s inventory levels falling worryingly low across the world leading to supply shortage in the local markets.
As copper is a crucial input metal in a number of industries, this has led to investors worrying about the availability of supplies in the coming few months, thus helping boost prices even further.
China has also been linked with copper prices, due to the country being the largest consumer of copper, accounting for about 50% of total global demand. Copper prices have also been supported by speculation that the Chinese government was planning an exit from its Covid-zero strategy.
- Zinc and lead prices rise
Domestic special high-grade (SHG) zinc ingots prices rose 4.8% to INR 276,000/t ($3,426/t) exw-Delhi and domestic remelted lead ingots prices remained rangebound at INR 175,000/t ($2,173/t), whereas refined lead ingots prices were recorded at INR 191,000/t ($2,371/t) exw-Delhi on 11 November, despite low trades. Trade participants believe that a clear scenario will emerge when prices on exchanges stabilise and are following a wait-and-watch approach in the short term.
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