On Monday’s closing, 18 March, base metals prices on the London Metal Exchange (LME) showed mixed trends. Meanwhile, stocks on the LME registered warehouses showed varied trends with nickel experiencing highest inflows among all base metals.
Three-month aluminium futures rose by 0.1% to $2,277/tonne (t), while nickel prices were at $17,872/t (down 1.12%). Copper prices settled at $9,089/t (up 0.1%), while zinc edged down by 1.1% to $2,532/t. Lead prices fell by 1.8% to $2,090/t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) gained by 0.2% to $9,085/t from $9,063/t compared to the previous closing.
India’s non-ferrous market
Domestic copper prices saw a rise of as much as 1.3% yesterday. This increase can be attributed to the high futures prices, with LME 3-month prices reaching an 11-month peak of over $9,000/t, and SHFE prices also climbing despite an uptick in inventories. Reports suggest that some smelters in China are considering reducing production in response to these market dynamics.
Meanwhile, domestic aluminium scrap prices continued to remain stable as of yesterday.
Global updates
Bank of Japan ends negative interest rates
The Bank of Japan ended eight years of negative interest rates, marking a historic shift away from massive monetary stimulus. While the first rate hike in 17 years maintains rates near zero due to economic fragility, the move signals confidence in Japan’s emergence from deflation.
European Aluminum calls for targeted sanctions amid Russian tensions
European Aluminium urged the EU to sanction Russian aluminum imports while sparing EU-based Rusal assets. The group emphasises the need to undermine Russian aggression without harming European industries. Rusal, with operations outside Russia, supplies bauxite and alumina crucial for aluminium production. EU imports of Russian aluminum have decreased but remained significant.
PT Vale Indonesia plans $1.91 billion nickel plant for electric vehicle batteries
PT Vale Indonesia is considering investing in a $1.91 billion high-pressure acid leaching plant in Sulawesi for nickel production, targeting electric vehicle battery materials. The “SOA HPAL” project would have an annual output of 60,000 t of nickel in mixed hydroxide precipitate. Vale already has two similar plants under construction.
Hydro collaborates with Sims Alumisource to boost aluminium recycling
Hydro, the leading North American producer of aluminium billets, partnered with Sims Alumisource to enhance post-consumer aluminium scrap processing. This collaboration provides Hydro with access to 36,000 t of additional high-quality scrap, reinforcing its commitment to sustainability. Sims Alumisource’s advanced techniques align with Hydro’s circular economy goals and Sims Metal’s mission to eliminate waste.
Russia’s RUSAL witness drop in revenue by 12.6% in 2023
In 2023, RUSAL faced challenges from global economic uncertainty and geopolitical tensions, leading to a significant drop in aluminium prices. Despite a 6.6% increase in primary aluminium and alloy sales, revenue decreased by 12.6% to $12,213 million. Adjusted EBITDA plummeted by 61.2% to $786 million.
India imposes anti-dumping duty on Chinese cast aluminium alloy wheels
The Indian Finance Ministry has levied definitive anti-dumping duties on imports of cast aluminium alloy wheels or alloy road wheels (ARW) from China, valid for five years. Duties range from $0.23 to $1.71 per kilogram, varying by Chinese producer. However, the official notification is yet to be published.
DGFT amends import policies for petroleum coke in compliance with air quality orders
In response to orders from the Commission for Air Quality Management and the Supreme Court, the Directorate General of Foreign Trade amended import policies for petroleum coke. For the financial year 2024-25, the allocation permits imports of 0.5 mnt of calcined petroleum coke (CPC) for the aluminium industry and 1.9 mnt of raw petroleum coke (RPC) for CPC manufacturing. Applications must be submitted online by 24 March, 2024.
Oil prices dip
Brent oil futures were down slightly by 0.3% to $86.63 per barrel. Crude oil WTI futures were down by 0.3% to $82.47 per barrel at the time of reporting.
Natural gas prices gain
Prices of natural gas were recorded at $1.709/MMBtu, up by 0.35%.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 103.79, slightly up by 0.35%.
The rupee was recorded at INR 82.94 against the USD, depreciating marginally against the previous closing.
