Base metals prices on the London Metal Exchange (LME) majorly remained positive barring aluminium as of the last closing. Meanwhile, stocks at LME registered warehouses witnessed mix trends with the largest outflows seen in copper.
Three-month aluminium futures dipped by 0.4% to $2,234/tonne (t), nickel prices were at $17,945/t (up 1.6%), copper prices settled at $8,542/t (up 0.4%), zinc edged up by 1.3% to $2,449/t, and lead prices gained by 0.8% to $2,052/t.
Meanwhile, copper stocks witnessed an outflows by 3.7% reaching 116,775 t from 121,375 t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) gained marginally by 0.3% to $8,514/t from $8,491/t compared to the previous closing.
India’s non-ferrous market
India’s aluminium scrap market stayed steady except for taint tabor scrap, dropping to INR 168,000/t ex-Delhi. Meanwhile, copper prices in the domestic market remained largely stable as of yesterday.
Global updates
EGA Reports Strong Financial Results for 2023
Emirates Global Aluminium (EGA) reported competitive financial results for 2023 despite lower global aluminium prices. Revenue reached $8.0 billion, driven by increased production and higher bauxite prices. Adjusted EBITDA was $2.1 billion, with dividends maintained at $1 billion.
China’s February Services Sector Performance
China’s services sector grew slower in February, with the PMI dipping to 52.5 from January’s 52.7. While still above the expansion threshold, business confidence eased, and staff numbers were trimmed for the first time since November. Foreign demand surged, but outstanding business fell, reflecting cautious optimism amid subdued market conditions.
Japan’s Service Sector Expands Strongly in February
Japan’s service sector continued expanding in February, driven by robust tourism and new product launches. The final au Jibun Bank Service PMI reached 52.9, marking growth for one-and-a-half years. However, manufacturing weakened due to soft demand, dampening overall private sector activity. Despite a slight dip in business confidence, optimism prevails, especially with expectations of increased investment and expansion plans.
Interest in First Quantum’s Zambian Copper Operations
First Quantum Minerals Ltd. attracts interest from multiple parties for a minority stake in its Zambian copper operations. Talks are ongoing as the Canadian miner seeks to strengthen its balance sheet after closing its Panama mine. Shares rose 7.8% in Toronto.
Britain Sees 10% Surge in New Car Registrations
Preliminary data from the Society of Motor Manufacturers and Traders (SMMT) revealed a more than 10% increase in new car registrations in Britain compared to the previous year, marking the best February in twenty years. Battery electric vehicle (EV) market share reached around 17%, prompting calls for fairer EV taxation ahead of the upcoming budget.
Alba Partners with WEF for Advanced Manufacturing
Aluminium Bahrain B.S.C. (Alba) signs a three-year Associate Centre Partnership Agreement with the World Economic Forum (WEF) to foster collaboration in advanced manufacturing. Alba aims to leverage WEF’s expertise for innovation and sustainability, potentially joining the Global Lighthouse Network for Industry 4.0 advancements.
Oil prices dip
Oil prices declined for a second consecutive day today. Despite China’s pledges to revamp its economy amidst sluggish growth since the COVID pandemic, investors remained wary of slower consumption, leading to the lack of enthusiasm in the market.
Brent oil futures down slightly by 0.24% to $82.60 per barrel. Crude oil WTI futures dip by 0.4% to $78.40 per barrel at the time of reporting.
Natural gas prices down
Prices of natural gas were recorded at $1.906/MMBtu, down by 0.52%.
Dollar index
A resilient U.S. economy buoyed the dollar, frustrating investors expecting rate cuts. U.S. GDP growth contrasted with stagnation in Europe and China, and Japan’s recession. Dollar strength may persist amid Fed testimony and jobs data. However, some foresee dollar weakening despite its recent rally.
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 103.88, slightly up by 0.05%.
The rupee was recorded at INR 82.91 against the USD, depreciating marginally against the previous closing.