Domestic base metals prices remained in negative territory this week following a downtrend in the three-month contract prices on the London Metal Exchange (LME).
Metal prices fell as one of China’s biggest cities, Chengdu, announced renewed lockdowns following fresh outbreaks of COVID-19 adding to demand worries, with prospects of aggressive interest rate hikes in the US weighing on sentiments.
Strong winds of inflation are blowing across nations and central bankers are determined to fight it out. In an inflationary environment, the central bank meeting in Jackson Hole last week had US Fed Chairman Powell saying that the Fed would continue to raise interest rates and maintain high rates for a while.
Also, the rupee fell to a record low of 80.11 earlier this week. Currently, the Indian rupee depreciated against the US dollar to reach 79.71, hovering around 80 throughout the week.
Aluminium scrap import prices volatile
Imported aluminium scrap prices (from the UK and the Middle East) decreased in the range of $10-185/t this week. On 30 August, the price of UK-origin imported aluminium Zorba 95-5 scrap increased by $25/t to $1,800/t and Middle East-origin tense scrap increased by $20/t to $1,740/t CFR Nhava Sheva.
Prices exhibited volatility owing to offer-bid disparity and fluctuations in futures on LME and SHFE, SteelMint assessment shows. Trade channels have varied opinions on price trends amid volatile futures and only sporadic contracts for small consignments were reportedly concluded around the assessed price levels.
Domestic aluminium tense scrap prices fell 2.64% to INR 147,000-148,000/t ($1,844-1,857/t) exy-Delhi.
Domestic copper prices down
Domestic copper armature scrap prices decreased by 5% to INR 588,000/t ($7,376/t) w-o-w due to low demand amid the global economic downturn resulting in a correction in secondary wire rod prices w-o-w by 4.45% to INR 630,000/t ($7,903/t).
Lead, zinc prices fall
Domestic special high-grade (SHG) zinc ingot prices fell 7.63% at INR 300,000/t ($3,763/t) w-o-w. followed by LME’s three-month zinc contract prices, which were down by 12% this week.
Moreover, domestic remelted lead ingot prices remained within a tight range at INR 180,000/t ($2,258/t), whereas refined lead ingot prices were recorded at INR 190,000/t ($2,383/t) exw-Delhi, following the decline in prices by around 5% w-o-w.
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