Weekly round-up: Base metals prices show diverse trends w-o-w

Domestic base metals prices saw diverse trends this week. Copper fell by 0.7% w-o-w, whereas zinc and lead rose by up to 1.2%.

All non-ferrous metals prices on the London Metal Exchange (LME) edged down w-o-w. Zinc prices fell the most by 6.9% w-o-w. In fact, other metals' prices too fell by up to 4.2%.

The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered around 104.84, up slightly by 0.03 against last week, Notably, it touched 105.13 in the middle of this week.

EU Central Bank hikes rate: The European Central Bank slowed its record pace of interest rate hikes on 15 December to a half-point rate hike (0.5 basis points), joining the US Federal Reserve and other central banks around the world.

US Fed raises interest rate: The Federal Reserve, on the other hand, raised interest rates by half a percentage point (0.50 basis points) after its two-day meeting on 14 December.

US CPI data out for Nov'22: US' consumer price index (CPI) that measures the change in prices paid by consumers for goods and services eased for a fifth straight month to 7.1% in November, as per figures released by the Labour Department on 13 December.

Japan's PPI data for Nov'22: Japan's Producer Price Index (PPI) rose 9.3% in November from 9.1% in the same period last year, as per Bank of Japan data. The non-ferrous PPI rose 6.5% y-o-y and 0.5% m-o-m.

Price picture

Aluminium prices fluctuate

Domestic aluminium tense scrap prices remained stable w-o-w at INR 148,000/t exy-Delhi.

Meanwhile, imported prices of the same were assessed at $1,760/t, up $40/t CFR Nhava Sheva w-o-w, and US-origin aluminium talk prices were at $4,340/t, a decrease of $40/t w-o-w, CFR Nhava Sheva.

According to sources, the UK-based exporters were not under selling pressure as they had adequate future bookings. In addition, limited suppliers were offering in the market, resulting in tight supply.

Copper prices trend lower

Domestic copper armature scrap prices fell slightly by 0.5% to INR 629,000/t ($7,602/t) w-o-w exy-Delhi.

Prices of secondary wire fell slightly by 0.7% to INR 677,000/t w-o-w ($8,182/t), while primary wire rods prices edged down by 0.5% to INR 740,000/t ($8,944/t) exw-Delhi yesterday.

LME-registered warehouse stock fell by 1,325 t w-o-w.

Meanwhile, finished material inquiries slightly declined in the domestic market towards the end of this week which made local prices to drop marginally. Buyers adopted a wait-and-watch mode for more clarity in exchange prices.

Lead stable, zinc rises slightly

Domestic special high-grade (SHG) zinc ingots prices rose 1.2% on healthy demand in the domestic market despite negative futures which fell to INR 290,000/t ($3,505/t) exw-Delhi. In addition, domestic re-melted lead ingots and refined lead ingots prices were almost stable w-o-w.