Base metals prices on the London Metal Exchange (LME) witnessed a positive trend with the highest change seen in zinc prices. Meanwhile, the stocks at the LME registered warehouses saw outflows with the largest drop seen in copper.
Copper briefly surged past $10,000 /t (tonne) on LME amid expectations of Federal Reserve rate cuts and supply concerns highlighted by Goldman Sachs. Soft US jobs data fuelled speculation of Fed easing, boosting copper alongside other risk assets. Bullish sentiment persists as demand outpaces mine production.
COMEX market
Copper prices on the Commodity Exchange (COMEX) dipped by 2.8% to $10,119/t against the previous closing.
India’s non-ferrous market
Indian aluminium scrap prices dipped despite stable LME prices. Buying activities slowed, with buyers adopting a cautious stance. Imported scrap prices remained low, influenced by subdued LME futures. Tense scrap from the US dropped to $1,950/t, while zorba 95/5 from the UK was at $2,130/t.
Global updates
China’s April export rebound
China’s April exports likely rebounded after a March decline, with a modest 1.5% growth expected due to subdued overseas demand and excess capacity. Analysts struggle to interpret mixed economic signals, with export predictions ranging from a 5.5% increase to a 3.4% decrease. Import growth is anticipated at 4.8%, but forecasts vary widely.
Aurubis AG exceeds profit expectations
Aurubis AG, Europe’s largest copper producer, announced first-half core profit exceeding expectations, reaching 243 million euros ($260.96 million), a 2% increase from the last year. Lower electricity and gas prices contributed to this result. Second-quarter core profit also rose by 16% to 132 million euros.
LME maneuvers amid Russian aluminium sanctions
The LME effectively curbed attempts to exploit new sanctions on Russian aluminum, leading to a rebound in physical liquidity and stabilising time-spreads. Despite regulatory adjustments, uncertainties persist regarding potential loopholes and further market maneuvers. China’s robust demand for Russian aluminium, particularly amidst Western sanctions, provides a crucial outlet, yet challenges regarding storage shuffles persist for the LME.
Freeport-McMoRan’s Grasberg export initiative
Freeport-McMoRan plans to export up to 900,000 t of copper concentrate from its Grasberg mine in Indonesia starting June, pending license extension talks. Indonesian export ban pressures smelters, driving copper prices to two-year highs. Market deficit expected to persist, potentially impacting treatment charges.
Oil prices dip
Oil prices dropped during early Asian trading on Wednesday due to industry data indicating an accumulation of both crude oil and fuel inventories in the U.S., signalling low demand. Additionally, there were cautious expectations regarding supply ahead of an upcoming OPEC+ policy meeting next month.
Brent oil futures were down slightly by 0.55% to $82.70 per barrel. Crude oil WTI futures edged down by 0.52% to $77.97 per barrel at the time of reporting.
Natural gas prices gain
Prices of natural gas were recorded at $2.214/MMBtu, up 0.32%.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 105.56, slightly up by 0.14%.
The rupee was recorded at INR 83.49 against the dollar, depreciating marginally against the previous closing.