The increase in prices could mainly be attributed to the decline in LME and IPAI stocks, and announcements of production cutbacks (totalling about 100,000 tonnes) by Alcoa and Alcan. LME stocks declined to about 780,000 tonnes at the end of April 1999, as compared with 818,000 tonnes at the end of March 1999. Total producer stocks, reported by IPAI, declined from 3.18 million tonnes at the end of January 1999 to 3.09 million tonnes at the end of February 1999. In addition, there are some indications of a recovery in demand in South Korea.

Domestic market prices of aluminium firmed up to Rs 79,500 pertonne in April 1999 as compared with Rs 76,000 per tonne at the end of March 1999. The increase in the prices could mainly be attributed to an increase in the international prices. In the first week of April 1999, domestic producers withdrew discounts of about Rs 3,000-4,500 per tonne. NALCO increased its prices by about Rs 1,300 per tonne, to Rs 69,500 per tonne, in addition to withdrawing discounts.

In 1998-99, domestic production of aluminium declined by about 10,000 tonnes, to about 545,000 tonnes. NALCO's production declined by 55,000 tonnes, to about 145,000 tonnes, due to technical problems at its smelter. Hindalco's production increased by 40,000 tonnes, to 241,000 tonnes, due to increased capacity.

Alumina:

International spot prices of alumina firmed up to $ 150-160 per tonne in April 1999, as compared with $ 140-150 per tonne in March 1999. The increase in prices is mainly due to the firm trend in the prices of primary metals. In addition, spot purchases by China are reportedly steadyand spot sales by NALCO have declined.

Copper:

International prices of copper firmed up significantly in April 1999. Prices increased by about $ 180 per tonne to about $ 1,553 per tonne at the end of April 1999 as compared with $ 1,370 per tonne at the end of March 1999. In the first week of May 1999, prices increased further to about $1,565 per tonne. The average price in May 1999 was $1,460 per tonne as compared with $ 1,378 per tonne in March 1999.

The increase in the prices is mainly attributed to purchases by commodity funds and some indications of a recovery in demand in South Korea. In April 1999, LME stocks increased by about 25,000 tonnes to 746,000 tonnes.Domestic market price of copper wire rods increased to Rs 111,000 per tonne in April 1999 as compared with Rs 107,000 per tonne at the end of March 1999. The increase in prices could mainly be attributed to the increase in producer prices following the firm trend in international prices. Hindustan Copper increased its prices by Rs1,500 per tonne, to Rs 97,000 per tonne in the second week of April. Prices were increased further, by about Rs 3,000 per tonne in the first week of May 1999.

Lead:

International prices of lead firmed up in April 1999. Prices increased to about $ 535 per tonne at the end of April 1999 as compared with $ 505 per tonne at the end of March 1999. In the first week of May 1999, prices increased further to about $ 542 per tonne. The average price in April 1999 was $ 518 per tonne as compared with $ 507 per tonne in March 1999.

International prices have increased mainly in response to the increase in the prices of other metals, such as copper and aluminium. LME stocks of lead remained steady, at about 103,000 tonnes, in April 1999.In April 1999, domestic market prices of lead ingots increased by about Rs 500 per tonne to Rs 39,500 per tonne. Producer prices remained unchanged in Apri 1999.

In the first week of May 1999, Hindustan Zinc increased its prices by Rs 1,000 per tonne to Rs 37,000 per tonnedue to the increase in international prices.

Zinc:

International prices of zinc increased by about $80 per tonne in April 1999. Prices increased to $1,072 per tonne at the end of April 1999, as compared with $990 per tonne at the end of March 1999. In the first week of May 1999, prices remained steady at $1,072 per tonne. The average price in April 1999 was $1,016 per tonne as compared with $1,030 per tonne in March 1999.

The increase in the prices could be mainly attributed to the increase in the prices of other metals, in addition to some indications of a recovery in demand in South Korea. Further, demand is expected to continue to grow in China. LME stocks of zinc increased by about 12,000 tonnes to 316,000 tonnes in April 1999. According to the International Lead and Zinc Study Group (ILZSG), in 1999, world consumption of zinc is expected to grow by 2.2 per cent, to 8.05 million tonnes. World production of refined zinc is expected to grow by about 2.1 per cent, to 8.2 milliontonnes.

Domestic market prices of zinc slab increased to Rs 75,500 per tonne in April 1999, as compared with Rs 74,250 per tonne at the end of March 1999. In the first week of April 1999, Hindustan Zinc increased its price by Rs 500 per tonne, to Rs 65,000 per tonne. Prices were increased further, by Rs 2,500 per tonne to Rs 67,500 per tonne in the first week of May 1999. The increase in the prices is mainly in response to the increase in international prices.

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