Base metals prices on the London Metal Exchange (LME) saw divergent trends on the last closing day. Stocks at LME-registered warehouses witnessed outflows barring copper.
Three-month aluminium futures inched up by 0.2% to $2,450/tonne (t), while nickel prices were at $17,804/t (up 0.5%). Copper prices settled at $9,329/t, while zinc edged down by 0.2% to $2,638/t. Lead prices were down by 0.7% to $2,123/t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) dipped by 0.2% to $9,305/t from $9,327/t at the previous closing.
India’s non-ferrous markets
Throughout the week, both domestic and global base metals markets experienced rising trends. Imported aluminum scrap markets sustained positive price levels, followed by domestic market. However, copper, zinc, and lead prices all witnessed rise.
Global updates
Copper storage risks prompt export plea
First Quantum Minerals’ subsidiary Minera Panama warns of risks from storing copper concentrate at Cobre Panama mine due to gas generation and rising temperatures. The company urges immediate export approval to mitigate environmental hazards and support safety measures. Proceeds from sales will fund preservation efforts, emphasizing transparency and cooperation.
Zambia eyes copper output surge
Zambia projects copper output to reach around 1 million tons by 2026, driven by investments in mine expansion, including by First Quantum Minerals. With revived operations at Mopani and Konkola mines, along with ongoing investments like Barrick Gold’s Lumwana project, the country aims to boost production despite recent declines.
Japan’s real wages fall again
Japanese workers’ real wages declined for the 23rd consecutive month in February, indicating persistent pressure on consumer spending due to higher prices. Despite nominal pay rising 1.8% year-on-year, inflation-adjusted wages fell 1.3%. The Bank of Japan closely monitors this trend along with other economic indicators to guide its monetary policy decisions.
India’s forex reserves touch record
India’s foreign exchange reserves hit a record high of $645.58 billion, rising for the sixth consecutive week, with a $2.95 billion increase. The Reserve Bank of India intervenes to stabilize the rupee, while reserves also include assets like gold and IMF positions.
China’s consumer sector thrives
China’s consumer sector started 2024 strongly, indicating robust household spending. Total retail sales in 2023 reached 47 trillion yuan, up 7.2% from the previous year, with a notable contribution to GDP growth. Services consumption, including catering and tourism, saw significant growth. Green and smart consumption are on the rise, reflecting evolving consumer patterns and scenarios.
Oil prices edge down
Oil prices dropped by over $1 per barrel on Monday, as tensions in the Middle East eased following Israel’s withdrawal of additional troops from southern Gaza. This move, coupled with Israel’s commitment to new discussions for a possible ceasefire in the ongoing six-month conflict, contributed to Brent crude dipping below $90.
Brent oil futures were down slightly by 1.68% to $89.64 per barrel. Crude oil WTI futures edged down by 1.63% to $85.49 per barrel at the time of reporting.
Natural gas prices dip
Prices of natural gas were recorded at $1.766/MMBtu, down 1.06%.
Dollar index
On Friday, the dollar strengthened against other currencies after bouncing back from a two-week low. Traders prepared for a significant U.S. jobs report and became more cautious due to escalating tensions in the Middle East.
The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 104.32, slightly up by 0.02%.
The rupee was recorded at INR 83.32 against the dollar, appreciating marginally against the previous closing.