Base metals prices on the London Metal Exchange (LME) majorly moved southward barring zinc as of the last closing. Meanwhile, stocks at LME registered warehouses witnessed outflows barring lead.
Base metals majorly fell as China’s absence of substantial stimulus measures disappointed markets. The 5% growth target for 2024 met expectations but did not satisfy some investors. Chinese traders’ absence post-Lunar New Year added to subdued sentiment.
Three-month aluminium futures dipped by 0.2% to $2,228/tonne (t), nickel prices were at $17,759/t (down 1%), copper prices settled at $8,491/t (down 0.6%), zinc edged up by 0.2% to $2,455/t, and lead prices fell by 0.2% to $2,046/t.
Zinc gained, buoyed by China’s refined zinc output decrease in January 2024, down 4.05% m-o-m to 567,000 t due to smelter maintenance and holiday shutdowns, partially offset by new capacity in Guangxi.
Meanwhile, lead stocks witnessed inflows by 2.5% reaching 187,750 t from 183,100 t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) dipped marginally by 0.8% to $8,447/t from $8,514/t compared to the previous closing.
India’s non-ferrous market
Aluminium
The Indian imported aluminum scrap market experienced price hikes due to factors like rising LME levels, global material shortages, and increased freight rates. Import prices have risen by up to 2.3%, with significant disparities between domestic and imported markets. Manufacturers emphasised local sourcing amid uncertainties in arrival times for imports.
Copper
Copper prices in the domestic market remained largely stable as of yesterday. Armature scrap stood at INR 687,000/t and secondary copper CCR was assessed at INR 724,000/t, both ex-Delhi.
Global updates
US services growth slows in February
U.S. services industry growth slowed in February with a decline in employment, but new orders rose to a six-month high. Despite inflation concerns, upbeat comments from businesses suggested underlying strength in the sector, supporting continued economic expansion.
Eurozone services recover; manufacturing declines
Eurozone’s services industry showed signs of recovery in February, expanding for the first time since July, while manufacturing contracted deeper. The PMI rose to 49.2, its highest since June but still below the growth threshold. Services PMI reached 50.2, signalling marginal growth. Employment rose, but inflationary pressures persisted.
Jogmec, Adventus Mining initiate Ecuador copper exploration
Japan’s Jogmec, in collaboration with Canada’s Adventus Mining, initiated copper exploration in Ecuador’s Tres Picachos region, aiming to bolster Japan’s copper reserves crucial for renewable energy and electric vehicle sectors. This strategic move underscores the global dynamics of securing vital resources for future technologies.
Indonesian nickel producer pursues LME listing amid market recovery
An Indonesian nickel producer seeks London Metal Exchange (LME) listing for its high-purity metal. This reflects Indonesia’s rise in global nickel production. LME aims to boost nickel listings to recover from 2022’s market meltdown. Rising stocks and trading volumes indicate positive traction for the exchange. Calls grow for a premium “green” nickel contract amid Indonesia’s dominance in production.
China’s copper processing fees plummet to decade low; recovery expected
China’s copper concentrate processing fees have hit a decade low, potentially impacting output. Maintenance season in the second quarter could trigger a recovery. The drop, attributed to global mine disruptions and tight supply, poses challenges despite Chinese smelter expansions. Smaller-scale smelters may face more significant impacts. A potential recovery is predicted in China’s copper processing fees starting from the second quarter.
Oil prices gain
Oil prices saw a modest rebound today following a period of decline. Despite concerns about demand growth in China and the U.S., supply constraints due to output cuts by major producers supported prices.
Brent oil futures up slightly by 0.27% to $82.26 per barrel. Crude oil WTI futures up by 0.26% to $78.35 per barrel at the time of reporting.
Natural gas prices down
Prices of natural gas were recorded at $1.943/MMBtu, down by 0.72%.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 103.76, slightly down by 0.04%.
The rupee was recorded at INR 82.88 against the USD, appreciating marginally against the previous closing.