Today, London Metal Exchange (LME) prices opened within a narrow range, with the exchange being closed on Friday for the Easter holidays. Furthermore, stocks in LME registered warehouses remained steady.
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
Throughout the week, both domestic and global base metals markets experienced contrasting trends. Imported aluminum scrap markets sustained positive price levels, while the domestic market remained stable. However, copper, zinc, and lead prices all witnessed declines.
The domestic market saw sluggish activity throughout the week, attributed to the fiscal year coming to a close and the lingering post-Holi festival atmosphere. Market participants were notably absent, likely enjoying an extended holiday period.
Global updates
China’s new home prices rise in March
In March, China saw its fastest rise in new home prices in over two years, up 0.27% from February, driven by supportive measures amidst a property sector crisis. Although Beijing eased regulations, total sales by value plummeted 49.0% y-o-y in first quarter (Q1), suggesting a sector recovery remains distant.
Asian factory activity weakens amid challenges
Factory activity in several Asian economies weakened in March due to sluggish domestic demand, despite China’s rebound, indicating ongoing challenges for the region’s economic recovery. While China’s manufacturing PMI expanded at the fastest pace in 13 months, Japan, South Korea, Taiwan, Malaysia, and Vietnam saw contractions. Uncertainty persisted amid global demand fluctuations and speculation over U.S. interest rate cuts.
Japan’s Q1 services optimism hits 33-year high
Optimism in Japan’s services sector rose to a 33-year high in Q1, propelled by tourism and price hikes, boosting expectations for another interest rate hike this year. However, sentiment among big manufacturers soured due to auto output disruptions, reflecting Japan’s fragile economic recovery. Uncertainty persisted amid concerns over global demand and the yen’s weakness.
Codelco’s 2023 profit drops 34% amid production challenges
In 2023, Chile’s Codelco reported a gross profit of $3.12 billion, down 34% due to operational challenges, with copper production at a 25-year low of 1.325 million metric tonnes. Despite the decline, CEO Ruben Alvarado anticipates a recovery by 2030, aiming to reach 1.7 mnt annually. Capital expenditure for 2024 is estimated at $4-5 billion.
Oil prices gain
Brent oil futures were up slightly by 0.32% to $87.28 per barrel. Crude oil WTI futures up by 0.37% to $83.48 per barrel at the time of reporting.
Natural gas prices dip
Prices of natural gas were recorded at $1.737/MMBtu, down by 1.47%.
Dollar index
The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 104.54, slightly down by 0.01%.
The rupee was recorded at INR 83.38 against the dollar, depreciating marginally against the previous closing.