The base metals market witnessed a downtrend this week as most trade participants globally as well as in the domestic market either remained bearish or adopted a cautious stance, interested only in fulfilling immediate requirements. Stocks of most base metals at LME-registered warehouse are waning for quite some time.
Global manufacturers are trying to reserve the liquidity ratio to thwart financing options as lending rates keep strengthening in major nations and global spreads have been continuously affected, SteelMint learnt from sources.
Further, global energy prices have soared to record-high levels due to supply constraints from Russia resulting in lower operational utilisation and diminishing inventory levels at registered LME warehouses.
Trade channels have been under pressure amid tight liquidity as most of the recognised sectors have seen partial lay-offs. Although a few industries are doing well, bearish trends like evolving interest rates and surging inflation weigh on sentiments.
Indian traders restrained their bids for sizeable quantities as global trends remain uncertain.
Import prices of aluminium
Prices of imported aluminium scrap of Middle East origin exhibited a fluctuating trend this week; tense and taint tabor scrap rose in the range of $10-30/t, while extrusion and talk scrap declined in the range of $60-$200/t.
Prices of aluminium talk scrap fell $200/t to $4,690/ CFR Nhava Sheva on 28 June.
UK-origin aluminium Zorba scrap rose by $35/t, while wheel scrap fell by $40/t CFR Nhava Sheva, as per SteelMint assessment.
Prices of aluminium wheel scrap fell $40/t to $2,440/t CFR Nhava Sheva on 28 June.
LME three-month aluminium contract prices fell marginally by 0.48% to $2,444/t on 1 July as against $2,456/t on 24 June.
Domestic prices
Domestic aluminium scrap prices declined this week, falling up to INR 3,000/t ($38/t), except prices of aluminium taint tabor scrap. Aluminium extrusion scrap prices fell INR 3,000/t ($38/t) to INR 178,000/t ($2,255/t), while aluminium tense scrap prices fell INR 2,000/t ($25/t) to INR 151,000/t ($1,913/t) exy-Delhi on 1 July.
Nickel, stainless steel prices fall
LME’s three-month nickel contract prices fell this week by 2.57% to $21,824/t on 1 July as against 24 June.
Domestic 304-grade stainless steel scrap prices saw a steep decline this week by 9.15% to INR 134,000/t ($1,697/t) exy-Delhi on 30 June.
304-grade stainless steel HR coil prices also fell this week by INR 2,000/t ($25/t) to INR 236,000/t ($2,989/t) exw-Mumbai on 28 June.
Copper downtrend
Copper LME three-month contract prices continued their negative streak, falling 3.97% to $7,976/t on 1 July.
Domestic copper armature scrap prices declined 5.15% to INR 636,000/t ($8,056/t) exy-Delhi on 1 July.
Copper primary and secondary wire rod prices also fell this week; the price of primary wire rods decreased by 5.72% to INR 698,000/t ($8,841/t) and secondary wire rod prices fell 5.35% to INR 684,000/t ($8,664/t) exw-Delhi on 1 July.
Zinc falls sharply
LME’s three-month zinc contract prices fell sharply by 9.58% to $3,029/t on 1 July.
The domestic special high-grade (SHG) zinc ingot prices fell nearly 9% to INR 291,000/t ($3,686/t) exw-Delhi on 1 July.
Domestic lead prices down
Domestic primary and secondary lead ingot prices declined 5% to INR 190,000/t ($2,407/t) and 4.6% to INR 178,000/t ($2,255/t) exw-Delhi on 1 July.
LME’s three-month lead contract prices increased by 1% to $1,935/t on 1 July as against $1,915/t on 24 June.
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