- LME aluminium up 1.92% despite weaker sentiment
- Rio Tinto flags smelting pressure, Kennecott partly shut
Base metals on the London Metal Exchange (LME) traded mostly lower on a d-o-d basis as of close of trading on 24 March, reflecting weaker market sentiment. However, aluminium bucked the trend, rising 1.92% to $3,261/t. Zinc declined 1.17% to $3,067/t, lead edged down 0.34% to $1,893/t, nickel fell 0.77% to $16,950/t, and copper slipped 0.55% to $12,101/t.
Warehouse inventory levels remained on a downward trend. Aluminium stocks declined 0.47% to 427,675 t, while zinc inventories fell 0.42% to 117,175 t. Nickel inventories eased 0.25% to 282,792 t, and lead stocks edged marginally lower by 0.01% to 284,075 t. In contrast, copper inventories increased by 1.50% to 347,475 t.
Domestic market overview
India’s non-ferrous scrap market remained largely stable, reflecting cautious market sentiment. Aluminium tense scrap (loose), ex-Delhi, remained unchanged at INR 247,000/t, while prices in the ex-Chennai market also held stable at INR 247,000/t.
Meanwhile, copper armature scrap (Cu 99%), ex-Delhi, increased by INR 10,000 (0.9%) to INR 1,070,000/t from INR 1,060,000/t, indicating firm sentiment in the domestic market.
Other updates
Australia backs Rio Tinto’s Boyne smelter
The Australian federal and Queensland state governments will jointly provide A$2 bn ($1.4 bn) in funding support to help keep Rio Tinto’s Boyne aluminium smelter operational, amid rising energy costs weighing on domestic metals processing competitiveness. The package aims to secure long-term operations while facilitating investments in supporting energy infrastructure.
The funding is expected to unlock nearly A$7.5 bn in additional investment in power generation and transmission assets in central Queensland, strengthening supply security for energy-intensive aluminium smelting and supporting the sustainability of Australia’s downstream aluminium value chain.
Global equities gain as oil declines
Global equity markets advanced while oil prices declined amid improving investor sentiment following expectations of diplomatic progress in the Middle East conflict. Brent crude fell 4.7% to around $99.55/bbl, supporting risk assets as easing energy prices reduced inflation concerns and expectations of further monetary tightening.
Asian equities rose about 1.8%, while the dollar weakened marginally and government bond markets in Australia, New Zealand, and the US strengthened, reflecting a shift toward risk-on sentiment across asset classes. Market participants continue to monitor geopolitical developments closely, as any escalation could again disrupt energy markets and financial stability.
Rio Tinto expects Resolution copper mine start-up by mid-2030s
Rio Tinto expects its Resolution Copper project in Arizona to commence production by the mid-2030s, following progress toward securing access to key land after a prolonged legal dispute. The mine is projected to produce over 40 bn lb of copper, potentially meeting more than 25% of US domestic copper demand over its life.
However, the company noted that challenging domestic smelting economics, including negative TC/RCs, may result in part of the copper concentrate output being exported rather than processed locally. Separately, the Kennecott smelter (Utah) remains partially shut following a recent fatal incident, while discussions continue with the Mongolian government regarding revised terms at the Oyu Tolgoi copper-gold operation.
Leave a Reply