Base metals prices on LME exhibit divergent trends in accordance with stocks

Non-ferrous metals prices on the London Metal Exchange (LME) experienced mixed trends. Three-month aluminium futures inched up by 0.1% to settle at $2,244/tonne (t), nickel prices rose by 0.2% to $16,888/t, copper prices edged up by 0.1% to $8,595/t, zinc prices inched down by 1% to $2,547/t and lead prices went down by 0.7% to $2,066/t. Stocks on LME-registered warehouses witnessed mixed trends as well.

COMEX market

Copper prices on the Commodity Exchange (COMEX) gained by 0.3% to $8,601/t from $8,579/t compared to the previous closing.

India's non-ferrous market

India's domestic aluminium scrap prices remained stable yesterday with limited demand in the market. Meanwhile, copper prices in the domestic market increased by up to 0.8%. Buyers seem to be stockpiling materials ahead of the new year, but there is a bid-offer disparity for imported copper motor mix scrap of US origin, with a price set at $1,130/t CIF Mundra.

Global updates

Marubeni and Antofagasta expand Centinela

Marubeni and Antofagasta will invest in the Centinela copper mine expansion project in Chile, doubling copper concentrate production. The $4.4 billion project aims to enhance global copper supplies, with Marubeni's equity share increasing by approximately 40,000 tonnes annually. Construction starts in 2024, with production set for 2027.

Norsk Hydro faces alumina challenges

Norsk Hydro will report approximately NOK 5.9 billion in impairment losses in Q4 due to challenging alumina markets and Australian power price uncertainty. The impairments include goodwill, property, plant, and equipment related to Bauxite and Alumina in Brazil, Alunorte alumina refinery, Paragominas bauxite mine, and Tomago aluminium plant in Australia. The impairments are considered adjusting items and won't affect the 2023 dividend.

Freeport Resources renews Yandera license

Freeport Resources' Yandera Copper Project, strategically positioned in PNG, has received a two-year license renewal. The project, with a large copper resource of 1 billion tonnes, aims to become a significant mine, addressing the rising global demand for copper amid forecasts of a supply deficit starting around 2025.

Japan's core inflation slows to 2.5% in Nov'23

Japan's core inflation decelerated to 2.5% in November, the slowest pace in over a year, amid diminishing cost-push pressures. While service prices rose, analysts question if demand-driven inflation will materialise, casting doubt on the Bank of Japan's imminent exit from ultra-loose policy. The central bank is closely monitoring wage-inflation dynamics.

Turkey's Central Bank raises key interest rate to 42.5% in ongoing fight against inflation

Turkey's central bank raised its key interest rate by 250 basis points to 42.5% to combat prolonged inflation. The move is part of a series of rate hikes, totaling 3,400 basis points since June, as the central bank aims for a more orthodox approach.

UK car production surges in Nov'23, highest Since 2020; Exports boosted by EU, China demand

UK car production in November surged nearly 15%, reaching 91,923 units, marking the highest November output since 2020. Export volumes increased by 15.2%, led by demand from the European Union, China, and Turkey. Electric vehicle production continued its upward trend, with a 20% increase to 35,169 units.

Capstone initiates Mantoverde project commissioning

Capstone Copper Corp. has commenced commissioning activities at its Mantoverde Development Project in Chile, aiming for a phased and efficient project ramp-up. The project is set to boost Capstone's consolidated copper production by over 40%, with unit operating costs decreasing significantly. The Mantoverde project's full production is expected to reach 32,000 t per day by mid-2024.

Oil prices gain

Oil prices rose 1% today amid ongoing Middle East tensions from Houthi attacks in the Red Sea. However, concerns arise over OPEC's effectiveness after Angola's decision to leave the group.

Brent oil futures went up by 0.78% to $79.99 per barrel. Crude oil WTI futures gained slightly by 0.76% to $74.45 per barrel, at the time of reporting.

Natural gas prices stable

Prices of natural gas were recorded at $2.572/MMBtu, remained largely stable.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 101.88, up slightly by 0.04% against the last closing.

At the time of reporting, the rupee was recorded at INR 83.26, stable against the previous closing.