Prices of base metals slip in last 12 months

THE PRICES OF base metals lost their shine over the past year as supplies recovered after earlier disruptions and rising input costs and increased availability of raw materials also played their part.

- RAJESH KURUP KISHOR

The supply of global base metals will remain tight in calendar year 2023, industry experts opine, due to supply issues and low inventory position.

In the past one year, the prices of most base metals including aluminium, copper, nickel, iron ore and hot rolled coil (HRC) steel- were trading lower by up to 40.3% on the London Metal Exchange (LME), Commodity & Energy Exchange (CMX) and Multi Commodity Exchange of India (MCX).

"Steel and major non-ferrous metals (aluminium, copper and zinc) have seen declining prices. Rise in coking coal and iron ore prices due to supply chain disruptions had led to steel price increases in the first quarter of calendar year 2023. However, as major raw material producing regions are out of their cyclone season, ample availability of material has led to decline of input prices," Hetal Gandhi, directorresearch at Crisil Market Intelligence and Analytics told FE.

"This coupled with demand slump from China along with decline in April PMI by 5% sequentially, has led to global steel prices softening.

Similarly, domestic steel prices are under pressure with limited trading activity as buyers anticipate further price correction," Gandhi added.