Base metals prices on the London Metal Exchange (LME) displayed negative trends barring copper as of the last closing. Meanwhile, stocks at LME registered warehouses witnessed outflows except aluminium.
Three-month aluminium futures dipped 0.05% to $2,190/tonne (t), nickel prices were at $17,601/t (up 0.8%), copper prices settled at $8,448/t (down 0.3%), zinc edged down by 0.3% to $2,414/t, and lead prices fell by 0.3% to $2,083/t.
Meanwhile, aluminium stocks at LME registered warehouses witnessed an inflow of over 1% to 591,675 t from 582,675 t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) dropped 0.3% to $8,447/t compared to 8,469/t in the previous closing.
India’s non-ferrous market
Aluminium
Aluminium ADC12 alloy ingot spot prices hold steady at INR 204,000/t w-o-w exw Delhi, despite rising local Tense scrap prices in India. Chennai’s Tense offers at INR 172,000-173,000/t, with bids at INR 170,000-171,000/t. ADC12 spot price in Chennai is assessed at INR 208,000-210,000/t exw. Tight Tense scrap availability affects manufacturers’ capacity utilization in north India.
Copper
Brass honey scrap (4%) from the Middle East dropped 1% w-o-w to $5,430/t due to uncertain bids/offers. Despite a $100/t decline in LME copper futures to $8,445/t, US-imported copper motor mix scrap held steady at $1,145/t CFR Mundra. Domestic copper prices remain stable d-o-d.
Global updates
Chinese manufacturing contracts
China’s manufacturing likely contracted for a fifth consecutive month in February, with the official PMI expected to dip to 49.1 from January’s 49.2, indicating ongoing economic struggles. Policymakers aim to stimulate growth, but limited fiscal capacity poses challenges amid concerns about overcapacity and the need for economic reforms.
Aluminium premiums surge for Japanese buyers
Global aluminium producers have proposed premiums of $145-$155/t for April-June shipments to Japanese buyers, a 61%-72% increase from the current quarter. Japan’s acceptance of these premiums sets the benchmark for Asia’s primary metal market. In the previous quarter, premiums were $90/t, down 7%.
IAI: Aluminum sector lowers emissions
The International Aluminium Institute (IAI) reported a decrease in greenhouse gas emissions from the aluminium sector in 2022, despite a 3.9% rise in production, attributing it to the adoption of less carbon-intensive technologies and increased recycling efforts. This reduction, to 1.11 billion metric tons of carbon dioxide, marks progress towards environmental sustainability, with initiatives like the use of hydropower in China and expanded renewable energy usage globally contributing to the decline.
Copper, lead, zinc recovery from slag
China’s Central South University researchers unveiled a sulfurization-reduction method for extracting copper, lead, and zinc from copper smelting slag. With pyrite as a sulfurizing agent, the technique recovers nearly 98% of copper and zinc and about 90% of lead from slag, reducing environmental impact and promoting resource efficiency.
Japan’s industrial output drops in Jan’24
Japan’s industrial output plummeted 7.5% in January, the sharpest decline since May 2020, primarily due to a significant drop in automobile production, notably at Toyota Motor Corp. group companies. Output halts and heavy snowfall impacted production.
Oil prices dip
Oil prices today continued their downturn from the prior session due to a larger-than-anticipated increase in U.S. crude inventories, raising concerns about sluggish demand. Additionally, indications suggesting sustained high U.S. interest rates added further pressure.
Brent oil futures fell slightly by 0.07% to $83.62 per barrel. Crude oil WTI futures dropped marginally by 0.04% to $78.51 per barrel at the time of reporting.
Natural gas prices stable
Prices of natural gas were recorded at $1.854/MMBtu, largely stable.
Dollar index
Today the dollar edged higher as traders overlooked U.S. manufactured goods data and awaited the Federal Reserve’s preferred measure of inflation. They sought clues on when the central bank might begin cutting interest rates.
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 103.88, slightly down by 0.09%.
The rupee was recorded at INR 82.89 against the USD, appreciating marginally against the previous closing.