Base metals prices on the London Metal Exchange (LME) saw significant increases following encouraging macroeconomic data from China, with all metals trading higher by the 5 pm closing on Thursday, 4 March. Meanwhile, stocks at LME-registered warehouses witnessed outflows barring nickel.
Three-month aluminium futures inched up by 0.6% to $2,444/tonne (t), while nickel prices were at $17,711/t (up 2.15%). Copper prices settled at $9,359/t, while zinc edged up by 3.8% to $2,645/t. Lead prices were up by 2.7% to $2,139/t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) rose by 1.2% to $9,327/t from $9,217/t at the previous closing.
India’s non-ferrous markets
Copper prices rose amid rising LME and SHFE rates. Domestic prices, including armature and CCR rods, climbed w-o-w. Increased demand from China and diversion of scrap to other markets contributed to price hikes. Similarly domestic and imported aluminium scrap offers rose amid a rise in the LME futures.
Domestic zinc and lead prices increased w-o-w driven by rise in LME futures and price adjustments by HZL. Zinc ingot prices in Delhi climbed to INR 230,000/t, up 2.8%. Additionally, zinc 3-M prices jumped over 6% to $2,600/t w-o-w, and lead prices reached $2,123/t.
Global updates
March job growth slows, wages high
U.S. job growth likely to have slowed in March, with wage gains remaining high, possibly delaying anticipated Fed rate cuts. The unemployment rate is expected to remain below 4%, reflecting a tight labour market. Increased immigration has influenced household employment, while payroll gains are expected to slow but remain positive.
RBI maintains repo rate unchanged
India’s monetary policy committee kept the repo rate unchanged at 6.5% for the seventh consecutive meeting, aiming to control inflation while supporting robust economic growth. RBI Governor emphasised the need for active disinflationary measures amidst expectations of sustained expansion and moderate inflation.
BOJ Governor hints at rate hike
Bank of Japan Governor Kazuo Ueda suggested a possible interest rate hike in the coming months as inflation accelerates, driven by significant wage increases. His remarks pushed Japan’s two-year government bond yield to a 13-year high. Concerns over the yen’s depreciation and its impact on inflation were also highlighted.
Vedanta’s Q4 FY24 production of aluminium gains 4%
Vedanta Ltd reported a 4% increase in total aluminium production to 598,000 t in Q4 FY24 compared to the previous year. Alumina production at the Lanjigarh refinery unit in Odisha rose by 18% to 448,000 t. In other sectors, zinc and lead production varied.
Codelco announces Q1 copper production
Chile’s Codelco, the world’s largest copper producer, reported first-quarter production close to 300,000 t. Chair Maximo Pacheco highlighted recovery efforts amid challenges like lower ore grades and project delays. Lawmakers aim for quicker decisions to address production issues, with further discussions planned this month.
Oil prices gain
Oil prices continued their upward trajectory on Friday, poised for a second consecutive weekly increase. This rise is fuelled by geopolitical tensions in Europe and the Middle East, supply constraints, and positive outlooks on global fuel demand amid improving economies.
Brent oil futures were up slightly by 0.44% to $91.05 per barrel. Crude oil WTI futures edged up by 0.24% to $86.80 per barrel at the time of reporting.
Natural gas prices dip
Prices of natural gas were recorded at $1.757/MMBtu, down 0.96%.
Dollar index
On Friday, the dollar strengthened against other currencies after bouncing back from a two-week low. Traders prepared for a significant U.S. jobs report and became more cautious due to escalating tensions in the Middle East.
The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 104.32, slightly up by 0.19%.
The rupee was recorded at INR 83.42 against the dollar, appreciating marginally against the previous closing.