Base metals prices on the London Metal Exchange (LME) remained under pressure as of yesterday’s closing. The three month prices on LME dropped by up to 1.4% with copper and lead witnessing the highest drop. Simultaneously, LME warehouse stocks witnessed varied trends with the highest inflow recorded for lead.
Three-month aluminium futures fell by 0.9% to $2,212/tonne (t), nickel prices was at $16,020/t (down 1.3%), copper prices settled at $8,359/t (down 1.4%), zinc edged down by 1.3% to $2,420/t and lead dropped by 1.4% to $2,114/t.
Notably, lead stocks at the LME registered warehouses witnessed an inflow by over 3% to 130,350 t from 125,775 t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) dipped by 1.3% to settle at $8,294/t compared to $8,403/t in the previous closing.
India’s non-ferrous market
Aluminium
In India’s aluminium scrap market, prices remained range-bound towards the starting of the week with slight shortage of Tense scrap seen in the market.
Copper
Domestic copper prices remain range-bound today amid a negative trend in futures prices. However, demand remains positive for raw materials to finished material.
Global updates
German exports plunge, recession looms
Germany’s exports plunged 4.6% in December, worse than expected, raising recession fears. Weak global demand, energy costs, and reliance on Russia all hit the economy. The slowdown is expected to impact central Europe and the eurozone as a whole.
Japan wages slide, spending dips as inflation bites
Japan’s real wages fell for 21 months straight (slower pace in Dec), marking 10 months of declining household spending. Inflation outpaces wage gains, hurting consumer spending. This data is key for the Bank of Japan as they consider ending stimulus policies. Prime Minister urges businesses to raise wages to outpace inflation.
Australia rates hold, more hikes eyed
Australia’s central bank kept rates unchanged but warned more hikes possible as inflation remains high. Though inflation eased, the bank wants more evidence before easing policy. This hawkish stance strengthened the Aussie dollar and delayed expectations of future rate cuts.
UK retail struggles amid inflation, rate hopes linger
UK retail sales fell 1.2% in Jan despite rising prices, showing inflation and high costs hurt spending. Consumers remain cautious, impacted by bad weather and economic woes. Rate cuts might offer relief, but supply chain disruptions add uncertainty. Overall, retail sales paint a picture of continued struggle for British businesses.
Gates, Bezos finds huge copper deposits in Zambia
A California mining company backed by billionaires like Gates and Bezos discovered a massive copper deposit in Zambia. This high-grade resource could be crucial for the energy transition and is estimated to be among the world’s biggest. The company uses AI to find new metals and aims to start production within 10 years, potentially boosting Zambia’s economy.
Oil prices inch up
Brent oil futures were marginally up by 0.23% to $78.17 per barrel. Crude oil WTI futures were up by 0.22% to $72.94 per barrel at the time of reporting.
Natural gas prices down
Prices of natural gas were recorded at $2.080/MMBtu, up by 0.10%.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 104.32, slightly down by 0.12%.
The rupee was recorded at INR 83.05 against the USD, depreciating marginally against the previous closing.
