Base metals prices on the London Metal Exchange (LME) were up across the board at the 5pm close of trading on Monday 11 March amid recent softness in the US dollar. Meanwhile, stocks at the LME registered warehouses continued to witness outflows.
Three-month aluminium futures gained by 0.8% to $2,259/tonne (t), nickel prices were at $18,377/t (up 2.03%), copper prices settled at $8,653/t (up 0.8%), zinc edged up by 1.5% to $2,567/t, and lead prices rose by 1% to $2,126/t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) gained by 0.8% to $8,623/t from $8,557/t compared to the previous closing.
India’s non-ferrous market
Yesterday, copper prices within the domestic market stayed within a range. Armature scrap prices were recorded at INR 693,000/t, while secondary rods were priced at INR 731,000/t, both on an ex-Delhi basis. Buyers expressed interest in primary CC rods at INR 750,000/t, yet sellers maintained their stance at INR 755,000/t, resulting in a disparity between bids and offers.
Meanwhile, domestic aluminium scrap market remained stable as of yesterday.
Global updates
Chambishi copper smelter reduces production
Zambia’s Chambishi Copper Smelter, operated by China Nonferrous Metal Mining Corp, has cut one-fifth of its copper production due to power shortages caused by drought. The plant, producing 250,000 t annually, considers installing diesel generators. Zambia’s overall copper output declined amid power challenges, with plans to meet mining companies for solutions.
Copper prices rise on supply concerns
Copper prices rose, driven by lower inventories and supply concerns. Declining LME stocks, mine disruptions, and Chilean giant Codelco’s production drop contributed. Peru aims for 3 mnt in 2024, with Las Bambas expansion plans pending community resolution.
Economists expect Fed rate cut in June
As per secondary sources, a stronger majority of economists predict the U.S. Federal Reserve will cut its key interest rate in June, awaiting further data on inflation. While Fed Chair Jerome Powell hinted at policy easing this year, resilient labour markets and inflation concerns may delay rate cuts.
Malaysia’s industrial production rises in January
Malaysia’s industrial production exceeded expectations in January, showing a 4.3% y-o-y increase, according to government data released on Tuesday. This growth rate marks the fastest expansion since May of the previous year, when factory output rose by 4.7%.
China Copper pursues overseas mineral assets
China Copper, a major metal producer, sought overseas mineral resources due to tight domestic supply. Chairman Xu Bo aims for collaborations globally to acquire high-potential mineral assets. Chinese smelters faced material shortages, driven by rising demand, particularly from electric vehicles and renewable energy sectors. Long-term sustainability requires industry collaboration, tech innovation, and market analysis.
Oil prices gain
Brent oil futures up slightly by 0.36% to $82.49 per barrel. Crude oil WTI futures up by 0.28% to $78.15 per barrel at the time of reporting.
Natural gas prices gain
Prices of natural gas were recorded at $1.817/MMBtu, up by 0.66%.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 102.8, slightly down by 0.06%.
The rupee was recorded at INR 82.75 against the USD, depreciating marginally against the previous closing.
