Base metals prices on the London Metal Exchange (LME) experienced positive movements as the week drew to a close on 5 April, 2024. Copper prices notably rose, marking the most significant increase among all base metals. Concurrently, stocks within LME-registered warehouses observed diverged trends.
On the LME, three-month aluminium futures increased by 7.93% to $2,450/t, while nickel settled at $17,804/t (up 6.3%). Copper prices were at $9,329/t, zinc rose 8.16% to $2,638/t and lead prices gained by 3.31% to $2,123/t.
Throughout the week, both domestic and global base metals markets experienced rising trends. Imported aluminum scrap markets sustained positive price levels, followed by domestic market. However, copper, zinc, and lead prices all witnessed rise.
Aluminium
During the week, primary aluminium ingot (P1020) prices in the spot market rose amid price hikes by primary players.
Aluminium ADC12 alloy ingot (automobile equivalent) spot prices increased marginally by INR 2,000/t to INR 213,000/t w-o-w exw Delhi, excluding GST. Imported tense scrap prices from the Middle East, particularly from the UAE, rose by $30/t to $1,880/t yesterday. Tense (6-7%) from the US was heard at $1,930/t, up by $30/t. The price for zorba 95-5 from the UK stood at $2,060/t CFR Nhava Sheva.
Copper
Domestic copper armature prices have been reported at INR 735,000/t, exy-Delhi, rising w-o-w, reflecting an increase of 3.4%. Notably copper prices in the futures market LME have hit 14-month high levels i.e. up over $9,350/t levels recently followed by prices in SHFE which is currently at $10,175/t a rise of 2.4% w-o-w.
Prices of secondary CCR rods (99%) were at INR 783,000/t ex Delhi, rising by 4% w-o-w. Meanwhile, primary CC rods were observed at INR 815,000/t, up 4.5% w-o-w.
Imported scrap prices have increased by up to 3.4% w-o-w. Notably, brass honey scrap from the Middle East has risen by $190/t to $5,780/t CFR Mundra.
Zinc, lead
Domestic zinc and lead prices rose this week due to a upward correction in HZL prices. Zinc ingot prices in Delhi rose to INR 234,000/t, up 4.5%. Re-melted lead prices stood at INR 179,000/t, up by 0.8%. Despite a drop in LME prices, Middle East zinc diecast (5%) prices rose 1.5% at $2,020/t CFR Mundra.
Global updates
Vedanta Aluminium, India’s largest producer, reaches a milestone in expansion efforts, aiming to be a top-three global player with 3 MTPA capacity. Achieving vertical integration, they commission a new 1.5 mnt expansion at their alumina refinery in Lanjigarh, Odisha.
China’s services activity growth quickened in March, with the services PMI rising to 52.7 from 52.5 in February, signalling a tentative economic recovery.
India’s monetary policy committee kept the repo rate unchanged at 6.5% for the seventh consecutive meeting, aiming to control inflation while supporting robust economic growth.
