The closing prices of base metals on the London Metal Exchange (LME) exhibited positive trends on Tuesday, 30 January, 2024. Meanwhile, the stocks at LME registered warehouses witnessed varied trends with copper experiencing the highest outflow by up to 1.25%.
Three-month aluminium futures gained by 0.4% to $2,274/tonne (t), nickel prices rose by 0.4% to $16,508/t, copper prices settled at $8,615/t (up 0.6%), zinc edged up by 0.5% to $2,564/t and lead gained by 0.2% to $2,177/t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) up by 1% to settle at $8,601/t compared to $8,513/t in the previous closing.
India’s non-ferrous market
Aluminium
Indian aluminium scrap prices surged by $60-70/t weekly due to rising futures, increased freight rates, and limited availability in western India. Tense scrap from the Middle East rose by $60/t, while US-origin scrap increased by $35/t to $1,775/t.
Issues in the Red Sea elevated freight rates, causing discrepancies in bid-offer dynamics. Winter slowdown and material shortages hindered recycling. Middle East and USA talk scrap prices rose up to $180/t, influenced by higher copper prices. China-origin silicon 553 prices stand at $2,110/t CIF Mundra.
Recently, Maruti Suzuki India Limited (MSIL) announced its monthly settlement price for ADC12, which increased by INR 8,500/t to INR 199,500/t for February 2024, which is yet to be absorbed in the market.
Copper
Domestic copper prices inched up yesterday amid a positive trend in futures prices which rose to $8,578/t. Armature scrap prices stood at INR 677,000/t. Secondary rods prices were at INR 719,000/t both ex-Delhi. MCX copper rose at the time of reporting.
Global updates
China’s January PMI contracts again
China’s manufacturing activity contracted for the fourth consecutive month in January, with the official PMI at 49.2, just above December’s 49.0. Lunar New Year and deflationary pressures impacted economic momentum. New orders and export orders sub-indices remained below 50, reflecting challenges in both domestic and external demand. The non-manufacturing PMI rose to 50.7.
Japan’s December industrial output rises
Japan’s industrial output increased by 1.8% in December, led by a 9.3% surge in general-purpose and business-oriented machinery production. Despite a 6.2% rise in semiconductor manufacturing equipment output and strong exports to China, South Korea, and Taiwan, a safety scandal at Toyota’s small-car unit poses a threat. Manufacturers expect a 6.2% decrease in January output, with the impact of a Daihatsu production halt due to safety tests rigging.
U.S. job openings rise in December 2023
U.S. job openings unexpectedly rose in December, signalling a resilient labour market. With 1.44 positions for every unemployed person, the data suggests continued economic strength. Despite potential impacts on inflation, the Federal Reserve is expected to maintain rates, reflecting a later-than-hoped shift to monetary policy easing.
UK business confidence surges for 2024
UK businesses began 2024 with confidence reaching its highest point in nearly two years, surging by nine points to 44%. Despite plans for increased staffing, wage growth has not accelerated significantly, a factor likely considered by the Bank of England in its interest rate decisions.
South Korea expects strong y-o-y export growth in January
South Korea’s January exports likely increased by 17.8% y-o-y, supported by robust semiconductor sales. The nation, a key global trade indicator, anticipates its fourth consecutive month of positive exports. Calendar effects and favourable comparisons due to Lunar New Year timing differences contribute to the upbeat outlook.
Oil prices slip
Today, oil prices declined due to sluggish economic data in China, the largest importer of crude oil, dampening demand sentiment. However, with escalating conflicts in the broader Middle East causing supply concerns, prices were on track for their initial monthly increase since September.
Brent oil futures were marginally down by 0.24% to $82.67 per barrel. Crude oil WTI futures dipped by 0.28% to $77.60 per barrel at the time of reporting.
Natural gas prices up
Prices of natural gas were recorded at $2.065/MMBtu, down by 0.53%.
Dollar index
The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 103.61, slightly up by 0.2%.
The rupee was recorded at INR 83.09 against the USD, appreciating marginally against the previous closing.
