Base metals prices on the London Metal Exchange (LME) remained relatively unchanged at the closing on Monday, 22 January. Lead was the only notable mover, with an increase of 0.9% increase.
Three-month aluminium futures inched down by 0.3% to settle at $2,159/tonne (t), nickel prices dipped marginally by 0.2% to $16,007/t, copper prices settled at $8,345/t (down 0.07%), zinc was slightly down by 0.2% to $2,456/t and lead increased by 0.9% to $2,124/t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) dipped by 0.5% to $8,271/t compared to $8,315/t in the previous closing.
India’s non-ferrous market
Aluminium
Domestic aluminium scrap prices in India maintained stability on the last trading day, with active buying inquiries contributing to a positive market sentiment. India’s domestic copper market prices edged slightly as of yesterday.
Global updates
China’s economic impact: Limited repercussions for U.S.
White House National Economic Council Director stated that China’s subdued economic recovery has had a limited impact on the U.S. economy due to diversified supply chains. The U.S. has been less affected, while other Asian nations and those closely tied to China experienced stronger repercussions. China’s economy grew 5.2% in 2023, reflecting post-pandemic challenges.
Bank of England tight decision on rate trims
A recent poll indicated a tight decision for the Bank of England on when to trim borrowing costs, with a slim majority of economists expecting a rate cut either in the next quarter or July-September. The shift reflects concerns about inflation falling faster, with the bank pivoting towards supporting economic growth.
SLN nickel producer reduced capacity post-electrical incident
SLN, the New Caledonia nickel producer owned by Eramet, reported operating at reduced capacity due to an electrical incident that caused a local power cut at its Doniambo plant. Production was disrupted by broken furnace cathodes, impacting the power grid. The incident’s resolution timeline remained uncertain amid ongoing negotiations to salvage New Caledonia’s struggling nickel industry.
Zinc price surge falters amid demand challenges
Zinc prices surged to $2,615/t on 15 January after Nyrstar announced the suspension of Budel smelting operations in the Netherlands due to high energy costs. However, the rally proved short-lived, with prices dropping 6% to approximately $2,450/t.
It emphasised that sustained price increases require a significant uptick in zinc demand, as current market dynamics focus on projected surpluses. Weak demand, particularly in China, where consumption failed to rebound post-Covid policy changes, and global economic uncertainties, have contributed to the challenge of balancing supply and demand.
U.S. existing home sales hit decade-low
U.S. existing home sales declined by 1.0% in December, reaching the lowest level since August 2010, but a potential recovery is anticipated in 2024 due to declining mortgage rates and improving housing inventory. In 2023, home resales dropped 18.7% to 4.09 million units, the lowest since 1995. First-time buyers accounted for 29% of sales, falling from 31% a year ago, while all-cash sales increased to 29% from 28%.
Nickel producers navigate impact of prices
Nickel producers are grappling with a sharp decline in prices, triggered by increased Indonesian supply. Wyloo Metals plans to place its Kambalda nickel operations on maintenance due to low prices.
South32 is reviewing options for its Cerro Matoso nickel operation in Colombia. BHP is reevaluating its nickel Australian business, potentially impacting the West Musgrave project. First Quantum Minerals will cut jobs and production at its Ravensthorpe mine, anticipating a three-year price downturn.
Indian delegation explores Zambia’s copper
India is considering sending a delegation, including mining firms Vedanta and Hindustan Zinc, EV maker Ola Electric, and battery recycler LOHUM, to Zambia for potential copper exploration and mining projects. The Mines Ministry aims to discuss cooperation in mineral resources through a joint working group meeting. Zambia holds 6% of global copper reserves and was the eighth-largest producer in 2022, attracting interest from industry players.
Oil prices gain
Today, oil prices showed minimal fluctuations as traders assessed various conflicting concerns related to both supply and demand. The situation involved escalating tensions in the Middle East and production disruptions in the United States caused by adverse cold weather conditions.
Brent oil futures were marginally up by 0.19% to $80.23 per barrel. Crude oil WTI futures were up by 0.16% to $74.91 per barrel, at the time of reporting.
Natural gas prices dip
Prices of natural gas were recorded at $2.404/MMBtu, down by 0.62%.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 103.18, slightly down by 0.15%.
The rupee was recorded at INR 83.1 appreciated marginally against the previous closing.
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