Base metals prices and LME stocks decline, except for aluminium

Non-ferrous metal prices on the London Metal Exchange (LME) experienced a downtrend, with the exception of aluminium. Three-month aluminium futures rose by 0.9% to settle at $2,140/tonne (t). In contrast, nickel prices declined by 0.3% to $16,468/t, copper prices edged down by 0.3% to $8,330/t, zinc prices decreased by 0.2% to $2,426/t, and lead prices dipped by 0.1% to $2,034/t. Simultaneously, there were outflows of metals stocks at LME-registered warehouses, reducing by up to 0.5%.

COMEX market

Copper prices on the Commodity Exchange (COMEX) rose by 1.3%, reaching $8,425/t compared to the previous closing at $8,315/t.

India's non-ferrous market

Aluminium

Stability was observed in aluminium ADC12 alloy ingot prices at INR 181,000/t in Delhi, with tense scrap prices standing at INR 153,000/t. Weekly aluminium futures declined to $2,121/t, and LME inventories witnessed an increase to 450,225 t. Tense scrap prices in India experienced a decrease of INR 1,000/t, while imports in the UAE dropped by $20/t to $1,540/t. China-origin silicon 553 recorded a $20/t increase, reaching $1,955/t.

Copper

Domestic copper prices experienced a 0.9% decline as the market sustained a moderate pace. In terms of imports, US-origin mix motor was priced at $1,060/t, CIF Mundra. Import bids were $50-60/t lower w-o-w, falling below seller offerings and making current prices impractical.

Global updates

Strong Australian job growth in November, 2023

Australia's job market surpassed expectations for the second consecutive month in November, with a significant addition of 61,500 jobs compared to the anticipated 11,000. However, the unemployment rate increased to 3.9%, reaching its highest level in 1.5 years, as more individuals actively sought employment, indicating a more lenient labour market. Despite the positive employment data boosting the Australian dollar to $0.6712, three-year bond futures saw a rise of 22 ticks to 96.26 due to reduced expectations for global central bank actions in the coming year.

Stable U.S. producer prices in November

U.S. producer prices in November defied expectations by remaining stable, primarily influenced by reduced energy costs. The report indicates subdued underlying inflation pressures, fostering optimism for an overall decline in inflation. This aligns with the Federal Reserve's indications of potential interest rate cuts in 2024.

Euro zone industrial production decline in Oct'23

Industrial production in the Euro zone experienced a more significant decline than anticipated in October, signaling a deeper economic downturn. Eurostat reported a 0.7% monthly decrease and a 6.6% y-o-y decline, with capital goods output leading the downturn with a 1.4% fall. The data aligns with concerns of a recession, as indicated by recent surveys and a 0.1% contraction in Q3.

Alcoa engages Spanish authorities over San Ciprian financial challenges

Alcoa Corporation is engaged in discussions with Spanish authorities to address financial challenges at its San Ciprian complex, comprising an alumina refinery and an aluminium smelter. Despite operational adjustments, persistent challenges include high energy costs, market dynamics, and economic slowdown. Alcoa underscores the importance of collaborative efforts to find a sustainable, long-term resolution, according to secondary sources.

Teck Resources earns copper mark for responsible operations in Chile

Teck Resources has been awarded the Copper Mark for its environmentally and socially responsible production practices at its Quebrada Blanca and Carmen de Andacollo operations in Chile. The Copper Mark assesses operations against 32 criteria, encompassing areas such as greenhouse gas emissions, community health and safety, Indigenous rights, and business integrity. The full capacity ramp-up of Teck's Quebrada Blanca is expected to double the company's annual consolidated copper production.

Oil prices gain

Oil prices in Asian trading today continued their upward trend, building on previous increases. This was driven by a more substantial-than-anticipated weekly reduction in U.S. crude inventories and positive expectations for demand, fueled by signals from the U.S. Federal Reserve indicating the possibility of lower borrowing costs in 2024.

Brent oil futures went up by 0.44% to $74.59 per barrel. Crude oil WTI futures rose slightly by 0.35% to $69.71 per barrel, at the time of reporting.

Natural gas prices edge up

Prices of natural gas were recorded at $2.369/MMBtu, up marginally by 1.46%.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 102.62, down slightly by 0.24% against the last closing.

At the time of reporting, the rupee was recorded at INR 83.31, appreciated marginally against the previous closing.