Positive trends prevailed in the global base metals market this week, as concerns about demand eased after softer-than-expected U.S. inflation data raised hopes of a less hawkish monetary policy.
The weaker-than-expected U.S. consumer price data released earlier this week raised hopes of less aggressive rate hikes in the world’s biggest economy, leaving room for more growth and metals demand.
A weaker dollar index also helped metals prices, traded in the U.S. currency on the LME by making them cheaper to holders of other currencies.
The dollar index was hovering at around $105 at the time of reporting.
Aluminium scrap import prices rise
This week, all imported aluminium scrap prices (from the UK and Middle East) increased in the $20-140/t range. On 9 August, the price of Middle Eastern-origin imported aluminium taint tabor scrap increased by $140/t to $2,150/t CFR Nhava Sheva.
Higher overseas prices and supply shortage pushed Indian importers to raise their bids to secure the minimum quantities to continue smooth operations while also considering the delay in deliveries. However, buyers’ opinions vary with most concerned about the price gap of domestic and overseas material.
Moreover, compared to 05-Aug, LME aluminium three-month contract prices rose 4.06% to $2,514/t on 12 August.
Domestic aluminium scrap prices rangebound
Throughout the week, domestic scrap aluminium prices remained rangebound. On 12 August, aluminium tense scrap prices were recorded at INR 151,000/t ($1,896/t) exy-Delhi.
LME nickel rises, domestic prices follow suit
SteelMint estimates that Indian 304 grade stainless steel scrap prices have recovered to INR 130,000/t ($1,638/t) ex-Delhi today, up from INR 128,000/t ($1,527/t) on August 4. The price of 304 grade HRC ex-Mumbai, on the other hand, has remained stable at around INR 238,000/t ($2,999/t).
According to sources, prices have recovered due to increased demand from railways and the rice mill segment. The overall scrap market remained firm, with the finished segment receiving more inquiries than the previous week.
Copper prices improve following benchmark exchange
Domestic copper armature scrap prices increased by 3.5% w-o-w to INR 642,000/t ($8,062/t) exy Delhi on 12 August due to improved demand and sharp hike in exchange prices, which led to supply tightness keeping prices supported in the local markets.
Morover, the three-month copper contract prices remained positive throughout the week, rising 4.14% to $8,196/t on 12 August compared to 05-Aug.
Copper rose on improving demand prospects due to softer than expected data from the United States and China were reinforced by a lower dollar.
Zinc prices on the rise
Domestic special high-grade (SHG) zinc ingot prices increased by 8.10% w-o-w in response to the rise in the three-month LME prices. Prices increased to INR 331,000/t ($4,157/t) exw Delhi on 12 August. LME’s three-month zinc contract prices rose 2.64% this week to $3,580/t on 12 August versus 05-Aug.
Lead prices edge up
Domestic remelted lead ingot prices increased this week to INR 181,000/t ($2,273/t) exw-Delhi on 12 August. Primary lead ingot prices were recorded at INR 195,000/t ($2,449/t) exw Delhi, up slightly by 1.46%. The LME three-month lead contract price rose by about 5.5% from 05 Aug to $2,184/t.
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