At close of trading on Friday, 30 August 2024, base metals prices on the London Metal Exchange (LME) showed negative trends except nickel which rose by 0.05%. Meanwhile, LME warehouse stocks exhibited mixed trends, with nickel experiencing the highest inflow at 2.04%.
On the LME, three-month aluminium futures fell by 3.74% to $2,447/t, and nickel prices edged up by 0.05%, settling at $16,766/t. Copper prices were at $9,235/t, down 0.57%, zinc decreased to $2,897/t, and lead fell by 3.02% to $2,053/t.
This week, the domestic and global base metals markets experienced varied trends. Notably, imported aluminium prices increased by upto 6.5%, moreover, copper and lead prices also increased up to 2%.
Aluminium
Imported market: Imported aluminium scrap prices in India drifted up w-o-w amid the rise in LME prices. Prices of all grades inched up by up to 6% this week amidst resumed purchase enquiries. Aluminium prices continue to go up after hovering at three-month lows. According to BigMint’s assessment, tense scrap from the Middle East, particularly the UAE, saw an increase of $35/t, settling at $1,815/t. Zorba 95/5 from the UK was up by $20/t to $2,020/t CFR west coast, India.
Domestic scrap: In the domestic market, tense scrap prices edged up w-o-w in both Delhi and Chennai. According to BigMint’s assessment, domestic tense scrap prices stood at INR 178,000/t ex-Chennai. Market participants expect prices to move up in the near term.
Aluminium alloy: In July, total imports of aluminum alloyed ingots saw a significant m-o-m increase of 26%, with the total volume rising from 17,965 t in June to 22,644 t in July.
Spot prices of aluminium ADC12 alloy ingots (non-OEM) in Delhi NCR and Chennai increased by INR 2,000/t w-o-w, according to BigMint’s latest assessment. In Delhi-NCR, ADC12 spot prices were assessed at INR 210,000/t ex-Delhi, aligning with domestic tense scrap prices, which settled at INR 177,000/t ex-Delhi.
Copper
Imported: BigMint’s assessment of US-origin talk scrap was at $4,900/t, a 4.5% w-o-w rise, Middle East-origin (UAE) prices were recorded at $4,600/t, up by 2.9% w-o-w. Copper motor mix scrap prices are being offered at $1,190-1,200/t by sellers based in the EU and the US. However, these prices seem to be higher than the bids currently being placed.
Although BigMint noted traded levels concluding at $1,160-1,170/t. China’s buying inquiries for motors and specific grades like Millberry, Candy berry, Cloves, and Birch Cliff have increased from Australia after months of slow activity.
Domestic: Domestic copper armature prices were assessed at INR 736,000/t ($8,770/t) exy-Delhi, w-o-w. Copper futures on the LME recently hit a 4-month low, falling to $8,750/t. However, prices have since rebounded to $9,240/t, reaching levels seen in July.
Prices of secondary continuous casting rods (CCR) (99%) were at INR 786,000/t ($9,367/t) ex-Delhi, slightly up by 0.12% w-o-w. Meanwhile, primary CCR were observed at INR 840,000/t ($10,013/t), up by 2.4% w-o-w. Imported scrap prices have increased by up to 2.6% w-o-w.
Zinc, lead
Domestic: India’s domestic zinc prices increased by INR 4,000/t ($48/t) w-o-w. Lead prices increased by INR 1,000 w-o-w as compared to 23 August, 2024. Zinc prices were at INR 275,000/t w-o-w, aligning with INR 1,200/t rise in HZL prices and Lead prices remained stable compared to 23 August. Domestic remelted lead was priced at INR 186,000/t, ex-Delhi. Middle East zinc diecast prices stood at $2,120/t CFR Mundra.
China base metals market overview
In the week ending 31 August 2024, deliverable stocks of base metals in Shanghai Futures Exchange (SHFE)-registered warehouses displayed mixed trends. Notably, lead saw a significant inflow, increasing by 9.2% w-o-w to reach 25,851 t, according to the exchange’s weekly stocks report.
India’s recycled metal content mandate
The Indian Ministry of Environment, Forest and Climate Change has introduced a new roadmap to reduce reliance on primary resources and minimise the environmental impact of mining.
Starting from FY’28, all new products made from non-ferrous metals will have to include a minimum of 5% recycled content. For aluminum, the recycled content must be 10%, for copper 20%, while for zinc it is 25%. Starting in 2025, producers of non-ferrous metals will be required to meet annual recycling targets, which will increase over time. By 2032, 75% of non-ferrous metals production should come from recycled materials.
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