Base metals prices on the London Metal Exchange (LME) witnessed mix trends as of last closing. Simultaneously, LME warehouse stocks majorly witness outflows barring aluminium.
Three-month aluminium futures dipped by 0.1% to $2,193/tonne (t), nickel prices were at $16,347/t (down 0.01%), copper prices settled at $8,500/t (up 0.78%), zinc edged down by 0.9% to $2,379/t, and lead prices gained by 0.2% to $2,048/t.
Notably, aluminium stocks witnessed inflows at LME registered warehouses. Lead stocks witnessed an inflow by over 2% at 564,675 t from 549,600 t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) saw a marginal gain of 0.8% to $8,491/t compared to 8,425/t the previous closing.
India’s non-ferrous market
Aluminium
The Indian market sees rising prices for imported aluminium scrap due to increased demand and shortages. The Middle East and the UK scrap prices have surged. Despite challenges like transit delays and material availability issues, demand remains strong, hinting at a positive outlook. Domestic tense scrap continues to command a premium due to shortages.
Copper
Domestic copper prices held steady, with armature scrap at INR 677,000/t ex-Delhi. Secondary CCR stood at INR 720,000/t, and primary rods at INR 740,000/t, both ex-Delhi. Demand for finished materials remained positive.
Global updates
Japan Exports Surge in January, Imports Fall
Japan’s January exports exceeded expectations, rising 11.9%, driven by U.S. auto shipments and Chinese demand for chip-making equipment. However, concerns linger over weakening factory sentiment amid global economic uncertainties. Imports fell 9.6%, resulting in a trade deficit of 1.758 trillion yen.
Automotive Manufacturing Facility Agreement in Abu Dhabi
KEZAD Group and Al Ghurair Group’s subsidiary, APT, signed a lease agreement for a 30,000 sqm automotive aluminum component manufacturing facility in Abu Dhabi, adjacent to Emirates Global Aluminum. The project aligns with UAE’s industrial objectives, enhancing the automotive value chain.
Tin Exports Drop, China Imports Rise in January
Indonesia’s refined tin exports plunged to only 400 t in January, causing market concerns. The decrease, blamed on permitting changes, coincides with the suspension of Myanmar’s largest mine. China’s heightened imports reflect market apprehensions. LME tin prices increased, and falling inventories suggest a tightening supply.
Rio Tinto’s Full-Year Earnings Decline
Rio Tinto disclosed an 11% decrease in full-year underlying earnings, ascribed to diminished contributions from its aluminum sector due to lower prices. EBITDA fell 38% in 2023 compared to the previous year. Aluminum prices declined from COVID-era highs in 2023 due to normalized supply chains and weakened demand in Western markets.
Novelis Secures Renewable Energy Pact
Novelis, a leading aluminum solutions provider, has signed a green Power Purchase Agreement (PPA) with Statkraft, committing to source 100% renewable energy for its German production sites, reducing carbon emissions by over 17,000 tonnes annually. This move is in line with Novelis’ objective to reduce its carbon footprint by 30% by 2026 and achieve carbon neutrality by 2050.
Oil prices witness mix trends
Oil prices fluctuated in Asian trading today, influenced by concerns about attacks on shipping in the Red Sea and growing speculation that the U.S. interest rate cuts will be postponed longer than expected.
Brent oil futures rose slightly by 0.45% to $82.71 per barrel. Crude oil WTI futures fell by 1.28% to $78.18 per barrel at the time of reporting.
Natural gas prices gain
Prices of natural gas were recorded at $1.710/MMBtu, up by 8.50%.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 104, slightly dip by 0.08%.
The rupee was recorded at INR 82.89 against the USD, appreciating marginally against the previous closing.
