This week, the London Metal Exchange (LME) experienced a second consecutive decline in the non-ferrous metals market. Similar to LME, the domestic Indian market also showed a downward trend. Trading activities remained moderate throughout the week.
The three-month aluminium futures on the LME fell by 3.4 per cent to US$2,134 per tonne, while nickel settled at US$16,806 per tonne (down 1.4 per cent). Copper prices were US$8,448 per tonne, while zinc fell by 4.4 per cent to US$2,399 per tonne. Lead prices also decreased by 4.4 per cent to US$2,025 per tonne. The LME warehouse stock level exhibited mixed trends week over week.
SteelMint’s assessment suggests last week, there was a rise in copper inventories by 4.2 per cent W-o-W, increasing by 7,350 tonnes to reach 181,600 tonnes. This led to a decline in future prices for copper in the market. Similarly, non-ferrous metal prices in India displayed a downward trend, reflecting the global market trend. Prices of imported aluminium and domestic scrap also experienced a decline. Copper prices, on the other hand, remained range-bound. Zinc and lead prices declined modestly, and market activities remained sluggish throughout the week.
In India, the primary aluminium ingot prices in the spot market saw a slight dip this week. However, major primary players have been reducing their prices, which is a positive sign for the market. Notably, the aluminium ADC12 alloy ingot prices have also come down by INR 2,000 per tonne to INR 181,000 per tonne. The scrap prices in India have seen a correction and currently stand at INR 153,000 per tonne exy Delhi.
Although the trading activity has been subdued, the decreased aluminium LME levels are providing some relief to the market. India's imported aluminium scrap market has also experienced a downward trend due to the subdued trading activity and decreased aluminium LME levels. Although the bid-offer gaps have widened to US$50-80 per tonne w-o-w for some grades, the overall situation is expected to improve in the coming weeks.
India's domestic aluminium scrap prices have indeed declined marginally w-o-w. However, this is primarily due to the year-end downturn and the reduced demand in the finishing sector. Keeping this in view, the market participants are optimistic that things will improve soon.
sourced under a content exchange agreement with SteelMint
Responses
