Base metals prices on the London Metal Exchange (LME) displayed positive trends as of last closing amid declining stocks at the LME registered warehouses. The highest drop was recorded for copper by 1.4%.
Three-month aluminium futures gained by 1.1% to $2,219/tonne (t), nickel prices were at $16,930/t (up 3.5%), copper prices settled at $8,542/t (up 0.49%), zinc edged up by 0.6% to $2,394/t, and lead prices gained by 1.4% to $2,077/t.
Notably, copper stocks witnessed the highest outflows at LME registered warehouses to 124,075 t from 125,925 t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) saw a marginal gain of 0.5% to $8,536/t compared to 8,491/t the previous closing.
India’s non-ferrous market
Aluminium
Aluminium ADC12 alloy ingot prices surged by INR 2,000/t w-o-w to INR 204,000/t due to rising local tense scrap rates. India’s top automaker set March’s ADC12 price at INR 207,400/t, up INR 7,900/t from February, the highest in ten months. Raw material shortages, especially tense scrap, escalated prices in North India to INR 172,500/t, while Chennai faces significant scarcity, with prices ranging from INR 171,000 to INR 172,000/t.
Copper
Imported copper prices in India surged by 3.5% w-o-w. US copper motor scrap increased by 0.4% to $1,145/t CFR Mundra, while Middle Eastern brass honey jumped to $5,485/t, up by 3.5%. Absence of firm bids/offers due to a $300/t rise in three-month LME contract prices; some tentative offers extended.
Global updates
Vale’s Sossego mine License suspended
On Wednesday, it was disclosed that Vale received notification from the State of Para’s environmental secretary, stating the suspension of its operating license for the Sossego mine. Vale stated in a filing that it is assessing necessary actions to restore the full validity of the mine’s license. While not specifying the reason for the suspension, Vale affirmed its adherence to the prescribed conditions and socio-environmental regulations. The Sossego mine, Vale’s second-largest copper producer after Salobo, yielded 66,800 t of copper in 2023.
Japan’s February PMI: Factory activity declines
Japan’s factory activity continued its decline in February, with the au Jibun Bank manufacturing PMI falling to 47.2 from 48.0 in January, marking nine consecutive months below the growth threshold. Service sector growth also eased, as reflected in the flash services PMI slipping to 52.5. The composite PMI decreased to 50.3 from 51.5 in January.
Teck Resources touts strong Q4 performance
Teck’s President and CEO, highlighted a robust Q4 performance, achieving $1.7 billion adjusted EBITDA. Teck reported record quarterly copper production and $6.4 billion adjusted EBITDA for the year.
Fed President Weighs on January inflation data
Federal Reserve President noted the complicating impact of faster-than-expected consumer and wholesale price increases in January on upcoming U.S. central bank interest rate decisions. While cautious about placing too much emphasis on January data due to seasonal factors, it was also acknowledged that the challenges posed by persistent inflation in shelter and services, despite a slowdown in goods prices.
The recently released inflation figures, including a 3.1% y-o-y consumer price increase and a steady 3.9% core measure, raise concerns about future policy adjustments.
First quantum minerals receives $500M injection from Jiangxi Copper
First Quantum Minerals secures a $500 million injection from Jiangxi Copper, its largest shareholder, via a three-year prepay arrangement. The deal involves delivering 50,000 t of copper anode annually from the Kansanshi mine in Zambia. First Quantum faces financial challenges, including debt maturation and operational uncertainties, but remains optimistic about potential resolutions.
Oil prices up
Today, oil prices climbed for a second consecutive day driven by anticipations of increased demand in the United States, the largest oil consumer globally. This optimism stemmed from efforts by refineries to resume operations following outages, coupled with a decline in the value of the dollar.
Brent oil futures rose slightly by 0.29% to $83.27 per barrel. Crude oil WTI futures gained by 0.33% to $78.17 per barrel at the time of reporting.
Natural gas prices dip
Prices of natural gas were recorded at $1.762/MMBtu, down by 0.62%.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 103.87, slightly dip by 0.13%.
The rupee was recorded at INR 82.92 against the USD, depreciating marginally against the previous closing.