Base metals prices and stocks on LME display contrasting trends

Non-ferrous metals prices on the London Metal Exchange (LME) witnessed uptrend barring aluminium in today's opening. Three-month aluminium futures inched down by 0.3% to settle at $2,319/tonne (t), nickel prices gained by 0.6% to $16,660/t, copper prices edged up by 0.5% to $8,620/t, zinc prices gained by 0.3% to $2,611/t and lead prices went up by 0.6% to $2,075/t. Stocks on LME-registered warehouses remained stable as LME was closed on 26 December 2023 due to Christmas.

COMEX market

Copper prices on the Commodity Exchange (COMEX) dipped by 0.3% to $8,578/t from $8,601/t compared to the previous closing.

India's non-ferrous market

India's domestic aluminium scrap market activities remained volatile while prices remained slightly on the higher side as of yesterday. The market is facing shortage of tense scrap in some parts of the northern region. Similarly, domestic copper market prices inched up by up to 0.8%.

Global updates

China's industrial profits surge amid recovery in Nov'23

China's November industrial profits surged 29.5%, marking a fourth consecutive monthly gain, driven by improved manufacturing and pro-growth policies. Despite meeting the 5% growth target, concerns linger over a shaky economic recovery due to property sector weakness and soft global demand, prompting calls for additional stimulus in 2024.

Northwest China cities curb industries to combat pollution

Xian and Yinchuan in northwestern China issued red alerts, urging residents to stay indoors and implementing emergency measures as heavy pollution, coupled with thick fog, is expected. The Central Meteorological Observatory predicted dense haze in the north and east until Saturday, prompting restrictions on industrial production and vehicle use. Low visibility warnings are issued for several provinces, potentially affecting year-end travel.

Chile revises mining investment projection to $65.71 billion

Chile's mining investments for 2023-2032 are projected at $65.71 billion, a slight decrease from the previous estimate of $73.65 billion, according to the country's copper commission Cochilco. The revised forecast considers 49 projects, down from the previous 53, with copper projects expected to attract the majority of investments at $57.35 billion.

Tongwei invests $3.9 billion in silicon production expansion

China's Tongwei is planning a $3.9 billion investment to expand silicon production in Inner Mongolia, aiming for an annual capacity of 500,000 metric tonnes of industrial silicon and 400,000 t of polysilicon. The world's largest polysilicon producer expects the first phase, involving a $1.9 billion investment, to be operational by end-2025.

Explosion in Guinea sparks surge in bauxite and aluminum prices

A fuel depot explosion in Guinea, a major bauxite producer, triggered a 7% surge in bauxite prices to a record $446/t and a 2.5% increase in aluminum prices. Despite ample Chinese port inventories, winter production concerns and interest rate cuts suggested potential support. Shanghai's aluminum inventories fell 8.5% in a week. Analysts anticipate a conservative rise to $2,480-$2,500/t in 2024 due to growing demand from electric vehicles and packaging industries.

Oil prices down

Oil prices remained relatively stable on Wednesday as investors kept a close eye on developments in the Red Sea. Despite ongoing attacks and heightened tensions in the broader Middle East, some major shippers resumed transit through the region.

Brent oil futures went down by 0.34% to $80.94 per barrel. Crude oil WTI futures dipped slightly by 0.19% to $75.43 per barrel, at the time of reporting.

Natural gas prices up

Prices of natural gas were recorded at $2.579/MMBtu, up by 1.14% at the time of reporting.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 101.47, up slightly by 0.01% against the last closing.

The rupee was recorded at INR 83.27, depreciated against the previous closing.