Base metals prices, stocks on LME witness downtrend d-o-d

The London Metal Exchange (LME) witnessed a decline in the entire range of base metals at the 5 pm close on Wednesday, 27 March. Meanwhile, stocks at the LME registered warehouses majorly witnessed outflows.

Three-month aluminium futures inched down by 0.2% to $2,298/tonne (t), while nickel prices were at $16,620/t (down 0.1%). Copper prices settled at $8,849/t, while zinc edged down by 0.2% to $2,437/t. Lead prices dipped 0.8% to $2,003/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

Aluminium

Spot prices of aluminium ADC12 alloy ingots saw a modest increase in Delhi, reaching INR 211,000/t. A major automotive company hiked its monthly settlement price to INR 212,400/t for April, reflecting ongoing raw material cost pressures. Market participants anticipate continued demand-supply imbalances, with manufacturers cautious amid supply chain challenges and year-end transaction postponements.

Copper

Domestic copper armature prices have been reported at INR 711,000/t, exy-Delhi, a minor drop d-o-d. Imported scrap prices have decreased by 1.7% w-o-w. Notably, brass honey scrap from the Middle East has dropped by $90/t to $5,590/t.

Global updates

US funds first primary aluminium smelter

The U.S. is planning its first primary aluminium smelter in 45 years, with $500 million awarded to Century Aluminium by the Biden-Harris administration. Aimed at addressing sector crisis and reducing import dependency, the smelter emphasises green, low-carbon technology. However, challenges lie in securing sufficient green power. Secondary aluminium projects also receive funding, enhancing circularity and reducing carbon footprint, offering short-term solutions amidst the broader push for industrial decarbonisation.

Britain’s car production surges in February

In February, Britain’s car production surged 14.6% y-o-y. The country witnessed a production surge, with 79,907 units manufactured compared to 69,707 units in the previous year. The increase was primarily propelled by a 58% rise in domestic demand. However, production dynamics may become more variable due to major manufacturers shifting focus to electric vehicle variants. Electrified vehicle output accounted for over a third of total production but slightly decreased from January.

Focus on Chinese profits, Australian inflation

Chinese industrial profits and Australian inflation take precedence in the Asian and Pacific economic agenda amidst stable global equity markets and risk appetite ahead of pivotal U.S. inflation data. Chinese President Xi Jinping’s upcoming meeting with U.S. business leaders signifies efforts to enhance economic ties amid concerns over transparency and Sino-U.S. relations. China’s economic indicators will shed light on industrial profitability trends, while Australian consumer inflation is expected to slightly rise.

First Quantum Minerals in talks with Jiangxi Copper

First Quantum Minerals executives met Chinese officials to discuss funding and business options involving Jiangxi Copper, its top investor. Talks included potential board influence, the future of Zambian assets, and Jiangxi’s purchase of disputed copper concentrates from Panama. Shares rose 5% on the Toronto Stock Exchange.

BALCO attains ASI certification for sustainable aluminium production

Bharat Aluminium Company Limited (BALCO), a unit of Vedanta Aluminium, achieved ASI Performance Standard V3 Certification for its Chhattisgarh facility, marking a milestone in sustainable aluminium production. BALCO’s facility features a smelter with two potlines for molten aluminium production, three casthouses for shaping, a rolled product plant, and a power generation plant. These components collectively enable an annual production capacity of 575,000 t, showcasing BALCO’s integrated and efficient manufacturing capabilities.