Base metals prices on the London Metal Exchange (LME) displayed positive trend majorly barring aluminium as of the last closing. Simultaneously, LME warehouse stocks witnessed mixed trends, with the highest inflow recorded for lead followed by zinc.
Aluminium closed with a slight decline, influenced by subdued industrial sentiments in China. Russian metal flows persist despite UK sanctions. Expectations of delayed Fed interest rate cuts until June amid inflationary concerns shape cautious market sentiment.
Three-month aluminium futures dipped by 0.2% to $2,218/tonne (t), nickel prices were at $16,356/t (up 0.6%), copper prices settled at $8,489/t (up 2.1%), zinc edged up by 1.3% to $2,385/t, and lead prices gained by 1.08% to $2,064/t.
Notably, lead stocks continued to witness inflows at LME registered warehouses. Lead stocks witnessed an inflow by over 2% at 177,575 t from 173,075 t. Meanwhile, zinc stocks also noted a rise by 1.9% to 264,825 t from 259,825 t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) gained by 2.1% to settle at $8,425/t compared to $8,249/t in the previous closing.
India’s non-ferrous market
In India, the non-ferrous sector witnessed varied trends for the week. Both imported and domestic scrap prices gained while the primary market P1020 prices remained largely stable. Copper saw minor price fluctuations, but zinc and lead took a notable tumble.
Global updates
China Holds Key Rate Amid Fed Uncertainty
China’s central bank maintained its key policy rate, amid uncertainties linked to the Federal Reserve’s easing timeline, constraining Beijing’s monetary policy flexibility. With investor expectations delaying Fed easing, China may withhold imminent stimulus measures to address deflationary pressures.
US Producer Prices Surge in January, Inflation Concerns Rise
U.S. producer prices rose more than anticipated in January, primarily driven by surges in service costs like hospital outpatient care and portfolio management, raising concerns over accelerating inflation. Meanwhile, single-family homebuilding declined last month due to adverse weather conditions but permits for future construction indicated potential for a rebound.
China’s 2023 Recycled Non-Ferrous Metals Output Soars
In 2023, China’s primary recycled non-ferrous metals production, as per the China Nonferrous Metals Industry Association, surged to 17.7 million tonnes (mnt), marking a 6.95% annual rise. Recycled copper production reached 3.95 mnt, up by 5.3%, while recycled aluminium production soared to 9.5 mnt, reflecting a robust 9.83% increase.
Zambian President Reveals Potential Third-Largest Copper Mine
Zambian President disclosed that the nation could possess the world’s third-largest copper mine, following the announcement by KoBold Metals, backed by Bill Gates, of the discovery of significant copper resources in the Mingomba project exploration. It is anticipated that once fully operational, the mine is projected to exceed production estimates of 500,000 to 600,000 t.
Oil prices dip
Today, oil prices dropped as focus shifted back to the demand outlook, triggered by reports of elevated producer prices in the U.S., the largest oil consumer globally. Concerns over persistent inflation and potential interest rate hikes raised apprehensions about constrained fuel consumption growth.
Brent oil futures were marginally down by 0.73% to $82.86 per barrel. Crude oil WTI futures were down by 0.61% to $78.71 per barrel at the time of reporting.
Natural gas prices down
Prices of natural gas were recorded at $1.560/MMBtu, down by 3.05%.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 104.21, slightly down by 0.08%.
The rupee was recorded at INR 83.00 against the USD, appreciating marginally against the previous closing.
