Base metals prices on the London Metal Exchange (LME) experienced diverse movements as the week drew to a close on 29 March, 2024. Nickel prices notably plummeted, marking the most significant decline among all base metals. Concurrently, stocks within LME-registered warehouses observed withdrawals, with the exception of lead.
On the LME, three-month aluminium futures increased by 1.24% to $2,337/t, while nickel settled at $16,749/t (down 2.8%). Copper prices were at $8,867/t, zinc fell 1.8% to $2,439/t and lead prices gained marginally by 0.9% to $2,055/t.
Throughout the week, both domestic and global base metals markets experienced contrasting trends. Imported aluminum scrap markets sustained positive price levels, while the domestic market remained stable. However, copper, zinc, and lead prices all witnessed declines.
The domestic market saw sluggish activity throughout the week, attributed to the fiscal year coming to a close and the lingering post-Holi festival atmosphere. Market participants were notably absent, likely enjoying an extended holiday period.
Aluminium
During the week, primary aluminium ingot (P1020) prices in the spot market rose amid price hikes by primary players.
Aluminium ADC12 alloy ingot spot prices rose by INR 3,000/t to INR 211,000/t in Delhi despite stable tense scrap prices. Chennai tense offers were at INR 182,000/t with tradable levels at INR 180,000-181,000/t. Monthly settlement for ADC12 by a major automotive firm increased to INR 212,400/t for April. Supply chain challenges persisted amid demand-supply disparity.
Imported aluminium scrap prices in India remained robust amid a rise in LME levels. BigMint assessments indicated a modest increase, with supply constraints from Asia driving prices up. Challenges like geopolitical conflicts and freight issues persisted, though improvements are anticipated by mid-April.
Copper
Domestic copper armature prices dipped to INR 711,000/t ex-Delhi, down 0.5% w-o-w. Secondary CCR rods fell to INR 753,000/t, a 0.7% decrease.
US aluminum talk offers hovered at 53.75% LME prices, and offers from UAE origin range from 49.75% to 50% CFR Mundra. BigMint’s assessment of brass honey scrap (4%) from the Middle East fell by 1.6% w-o-w to $5,590/t, with some sellers presenting tentative high offers, imported copper motor mix scrap from the US fell to $1,170/t.
Zinc, lead
Domestic zinc and lead prices declined this week due to a downward correction in HZL prices. Zinc ingot prices in Delhi fell to INR 223,000/t, down 1.9%. Re-melted lead prices stood at INR 177,000/t. Despite a drop in LME prices, Middle East zinc diecast (5%) prices held firm at $1,990/t CFR Mundra.
Global updates
Partially settled negotiations establish April to June aluminium premiums at $145/t. Sales of aluminium ingots surged by 61% q-o-q, exceeding the $100/t milestone, attributed to supply and demand constraints.
India launched probe into Chinese aluminium foil imports following complaints from domestic manufacturers. The Directorate General of Trade Remedies is investigating allegations of dumping.
The International Copper Study Group (ICSG) released preliminary data indicating a global increase of around 5% in refined copper production in January 2024.
