Base metal prices on LME largely positive; Stocks record outflows barring aluminium
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Base metals prices on the London Metal Exchange (LME) displayed positive trends majorly barring zinc and lead ad of last closing. Meanwhile, stocks at the LME registered warehouses witnessed outflows barring aluminium.
Three-month aluminium futures gained by 0.5% to $2,191/tonne (t), nickel prices were at $17,460/t (up 1.6%), copper prices settled at $8,474/t (up 0.09%), zinc edged down by 0.08% to $2,422/t, and lead prices fell by 0.3% to $2,090/t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) saw a rise of 0.5% to $8,469/t compared to 8,425/t in the previous closing.
India's non-ferrous market
Aluminium
In India, imported aluminum scrap prices rose due to factors like elevated LME levels, material shortages, and escalating freight rates. Tense scrap from the UAE rose by $55/t, reaching $1,750/t, while zorba 95/5 from the UK increased to $2,025/t CFR Mundra. Buyer-seller disparity persists amidst booking uncertainties and delayed shipments, impacting market dynamics.
Copper
Yesterday, domestic copper prices slightly declined by up to 0.9%, with MCX futures at INR 724,000/t. Armature scrap and secondary rods prices were INR 685,000/t and INR 723,000/t respectively, ex-Delhi. Slow demand was observed before month-end.
Global updates
U.S. Durable Goods Orders Decline in January
U.S. durable goods orders saw the sharpest decline in nearly four years in January, indicating a loss of economic momentum. Concerns over the labor market and the upcoming presidential election weighed on consumer confidence. Despite signs of manufacturing stabilization, a full recovery remains distant amid tepid business spending and tightening borrowing costs.
South Korea Exports Rise, Imports Fall in February
South Korea's February exports are expected to rise for the fifth consecutive month, driven by chip shipments, albeit at a slower pace due to calendar effects. Analysts anticipate a 1.9% increase, following January's 18.0% surge. Imports likely fell 10.4%, marking the 12th straight month of decline.
Hong Kong Unveils Real Estate Stimulus
Hong Kong announced measures to revitalize its real estate market, including scrapping tightening measures for residential properties. The move aims to stimulate the economy amidst challenges like high interest rates and geopolitical tensions, with the housing sector having seen a 20% decline since its 2021 peak.
Zambian President Sees US-Backed Project as Historic Opportunity
Zambian President views the US-backed initiative linking copper mines to Angola's Lobito port as a "once-in-a-lifetime" opportunity. The project, supported by a $250 million loan, aims to boost transit efficiency. It aligns with Biden administration's strategy to secure metal access for energy transition and counter China's influence. China's $1 billion-plus plan for rail revitalization is also in progress.
Oil prices dip
Oil prices retreated in Asia today due to concerns about a potential delay in the U.S. rate-cutting cycle and an increase in U.S. crude stocks. This offset the earlier boost from news suggesting OPEC+ might extend its output cuts.
Brent oil futures down slightly by 0.44% to $83.28 per barrel. Crude oil WTI futures drop marginally by 0.43% to $78.54 per barrel at the time of reporting.
Natural gas prices steady
Prices of natural gas were recorded at $1.808/MMBtu, remained largely stable.
Dollar index
Today the dollar edged higher as traders overlooked U.S. manufactured goods data and awaited the Federal Reserve's preferred measure of inflation. They sought clues on when the central bank might begin cutting interest rates.
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 103.97, slightly up by 0.13%.
The rupee was recorded at INR 82.92 against the USD, depreciating marginally against the previous closing.
