The London Metal Exchange (LME) witnessed an increase in all base metals prices at the 5 pm close on Thursday, 28 March 2024 ahead of the Easter holidays. Meanwhile, stocks at LME registered warehouses witnessed varied trends.
Three-month aluminium futures inched up by 1.7% to $2,337/tonne (t), while nickel prices were at $16,749/t (up 0.7%). Copper prices settled at $8,867/t, while zinc edged up by 0.08% to $2,439/t. Lead prices gained 2.6% to $2,055/t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) remained largely stable at $8,799/t compared to the previous closing.
India’s non-ferrous market
Domestic copper prices remained range-bound yesterday. BigMint’s assessment of brass honey scrap (4%) from the Middle East fell by 1.6% w-o-w, with some sellers presenting tentative high offers, imported copper motor mix scrap from the US fell to $1,170/t.
Meanwhile, domestic aluminium scrap market prices remained stable as of yesterday.
Domestic zinc and lead prices declined this week due to a downward correction in HZL prices. Despite a 4% drop in LME prices, Middle East zinc diecast (5%) prices held firm at $1,990/t CFR Mundra.
Global updates
US economy surges
The US economy grew faster than expected in Q4, driven by robust consumer spending and business investment. Profits surged, potentially encouraging job retention. Despite Fed interest rate hikes, economy remains resilient, outpacing global peers. GDP growth revised up to 3.4%. Continuing jobless claims steadied, suggesting balanced labour market dynamics.
Chinese smelters mull output cuts
Chinese smelters, responsible for over half of global refined copper output, are considering joint output cuts of 5% to 10% this year due to tightening ore supplies, as treatment and refining charges plummeted. Uncertainty remains over full implementation amidst profit concerns and local growth targets.
Codelco projects production growth recovery
Chile’s Finance Minister, Mario Marcel, anticipates a production increase for Codelco in 2024, marking a turnaround from recent years of decline. Despite facing challenges from project setbacks and aging infrastructure, Codelco’s new CEO, Ruben Alvarado, aims to revitalize operations. Marcel notes a gradual recovery, particularly with underground operations at the Chuquicamata mine, contributing to improved finances.
Chile, the top global copper producer, recorded a 9.95% year-on-year increase in copper output in February, reaching 420,242 t, according to the country’s INE statistics agency. Additionally, manufacturing production in Chile surged 8.8% during the same period, exceeding economists’ expectations of a 5%.
India seeks lithium, copper abroad
India plans to send two delegations to Chile next month to explore lithium and copper resources, vital for electric vehicle batteries and renewable energy systems. State firms, under Khanij Bidesh India (KABIL), aim to acquire assets abroad. India also eyes Africa for critical minerals as it pursues energy transition goals.
Nalco unveils AL-59 aluminum alloy ingot
Nalco hasintroduced AL-59, an Aluminum Alloy Ingot, aimed at enhancing electrical transmission and distribution conductors, particularly in line with the Government of India’s Revamped Distribution Sector Scheme (RDSS).
Oil prices gain
Brent oil futures were up slightly by 1.86% to $87.00 per barrel. Crude oil WTI futures up by 2.24% to $83.17 per barrel at the time of reporting.
Natural gas prices up
Prices of natural gas were recorded at $1.763/MMBtu, up by 2.62%.
Dollar index
The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 104.63, slightly up by 0.08%.
The rupee was recorded at INR 83.36 against the dollar, appreciating marginally against the previous closing.