Domestic base metals prices saw mixed trends this week, increasing by up to 1.6%, while finished copper prices fell by 0.7% w-o-w.
While all non-ferrous metals prices on the LME fluctuated, zinc and lead gained slightly by up to 0.9% w-o-w. However, other metals fell by up to 5.7%.
The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered around 106.97, almost stable against last week, Notably, it touched the level of 112 last week.
China is the biggest metals consumer in the world. Some market participants believe that the easing of COVID restrictions has led to a revival in industrial activity in that country increasing demand for metals. A weaker US dollar index, soft US consumer price index in October, and optimism over China’s plan to relax pandemic-related restrictions are fuelling base metals prices, SteelMint understands.
As per market participants, the effect of withdrawal of export duty on steel raw materials is not clear yet. A clear picture will emerge only after the New Year holidays in major markets like the US and UK. Whether prices change will only become clear once the market resumes after holidays, depending on such factors as recession in foreign markets and domestic demand and supply.
Metals prices
- Aluminium prices rise w-o-w
Domestic aluminium tense scrap prices rose 1.4% w-o-w to INR 146,000/t exy-Delhi. Sources informed that improved trade volumes were seen in the northern region amid limited semi-finished shipments from the western region, which have gradually declined over the last few days.
Meanwhile, imported aluminium tense scrap prices are assessed at $1,730/t, up $30/t CFR Nhava Sheva w-o-w, and US-origin aluminium talk prices were at $4,430/t, an increase of $220/t w-o-w CFR Nhava Sheva.
- Copper prices fluctuate
Domestic copper armature scrap prices fell slightly by 0.6% to INR 616,000/t ($7,556/t) w-o-w exy Delhi. Prices of secondary wire rods also fell by 0.7% w-o-w to INR 664,000/t ($8,145/t) and primary wire rods prices rose by 1.4% to INR 712,000/t ($8,734/t) exw-Delhi yesterday.
Copper prices were still on the higher side as the metal’s inventory levels have fallen across the world leading to supply shortage in local markets.
Demand for primary has risen after the festive season owing to a rise in construction activity which also led to an improvement in wire rod prices.
- Zinc, lead prices rise
Domestic special high-grade (SHG) zinc ingots prices rose 1.6% to INR 276,000/t ($3,386/t) exw-Delhi, while domestic remelted lead ingots prices remained rangebound at INR 176,000/t ($2,159/t). Refined lead ingots prices were recorded at INR 194,000/t ($2,380/t) exw-Delhi on 17 November, an increase of 1.7% w-o-w despite low trades and following positive LME prices.
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