Weekly round-up: Base metals prices witness mixed trends

Domestic base metals prices saw mixed trends this week, increasing by up to 1.3%, while finished copper prices fell slightly by 1.8% w-o-w.

While all non-ferrous metals prices on the LME were on the down side, zinc and lead fell most by up to 3.7% w-o-w. However, other metals prices, too, fell by up to 2.8%.

The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered around 106.06, down 1.77 against last week, Notably, it touched the level of 107.83 at the beginning of this week.

Covid cases are swelling in China, with the number of new daily cases at all-time highs, and due to the pandemic situation, financial problems amid constrained demand in China weighed on base metals prices.

Metals prices

• Aluminium prices slide

Domestic aluminium tense scrap prices were stable w-o-w to INR 146,000/t exy-Delhi, sources informed that there has been production cut in the market resulted to limited buying.

Meanwhile, imported aluminium tense scrap prices are assessed at $1,710/t, down $20/t CFR Nhava Sheva w-o-w, and US-origin aluminium talk prices were at $4,260/t, a decrease of $170/t w-o-w CFR Nhava Sheva.

• Copper prices fluctuate

Domestic copper armature scrap prices rose slightly by 0.3% to INR 626,000/t ($7,665/t) w-o-w exy Delhi. Prices of secondary wire remained almost stable w-o-w at INR 673,000/t ($8,240/t), while primary wire rods prices edged down by 1.8% to INR 707,000/t ($8,657/t) exw-Delhi yesterday.

Trader sources believe that the current disequilibrium between supply and demand is not much clear, but demand by the end of the year may not boom as fundamentals indicate limited support for copper prices.

Prices were still on the higher side as inventory levels have fallen across the world which has led to a shortage of material, a trader source said.

• Zinc fell, lead prices rise slightly

Domestic special high-grade (SHG) zinc ingots prices fell 3.5% to INR 270,000/t ($3,306/t) exw-Delhi, while domestic remelted lead ingots prices rose slightly by 1% at INR 178,000/t ($2,179/t). Refined lead ingots prices were recorded at INR 194,000/t ($2,375/t) exw-Delhi on 25 November, almost stable w-o-w.

According to market sources, active purchasing was seen towards the end of last week amid high demand. However, limited purchase enquiries for zinc and the downturn in LME prices compelled sellers to lower their offers towards the middle of the week.

Amid low trades for lead in the domestic market and following fluctuating LME prices, local prices remain volatile.