Base metals prices on LME dip barring aluminium; Stocks witness mix trends
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Base metals prices, excluding aluminium, on the London Metal Exchange (LME) declined on Tuesday, 16 April, following a surge on Monday, 15 April, which was triggered by fresh limitations on metal sourced from Russia.
Three-month aluminium futures gained by 0.2% to $2,561/tonne (t), while nickel prices were at $17,726/t (down 0.67%). Copper prices settled at $9,468/t, while zinc edged down by 0.1% to $2,771/t. Lead prices were down by 1.6% to $2,148/t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) dipped 1.6% to $9,460/t against the previous closing.
India's non-ferrous markets
Aluminium
Aluminium scrap prices in India surged due to rising LME futures and sanctions on Russian metals. Despite hesitancy among buyers, prices rose by up to 3.4%, with uncertainty prevailing amidst fluctuating offers and bid disparities, influenced by geopolitical factors.
BigMint's assessment for tense scrap in the domestic market stood at INR 186,000/t. This reflects a slight increase of 1.6% from the previous week's INR 183,000/t, ex-Delhi.
Copper
Domestic copper prices rose up to 1.7% yesterday amid strong demand and bullish sentiments. Armature scrap touched INR 773,000/t and secondary rods, INR 820,000/t, ex-Delhi. Copper armature was traded at INR 773,000/t ex Delhi and copper secondary CCR was traded at INR 820,000/t in Delhi recently for 30 t.
Global updates
U.S. March housing starts, manufacturing shift
U.S. single-family homebuilding declined in March, influenced by rising mortgage rates despite low housing inventory. Housing starts dropped 12.4%, with permits for future construction also falling. Meanwhile, factory production increased 0.5% in March, indicating a potential turnaround in manufacturing amidst tighter monetary policy.
Rio Tinto's resolution mine strategy
Rio Tinto aims to retain all copper from its Resolution mine in the U.S. if approved, amidst opposition from Native Americans. Bold Baatar emphasised strong domestic demand. He tracks a court case challenging the project, highlighting U.S. regulatory standards. Concerns over global copper supply amid rising demand for clean energy technologies persist among industry leaders.
Copper price projection by Trafigura
Jeremy Weir, CEO of Trafigura Group, stated at the CRU World Copper Conference in Santiago that to address an anticipated 8 million tonne supply deficit by 2034, mining firms require copper prices exceeding $10,000/t, potentially reaching $12,000/t.
Peru's February copper production soars
Peru's copper production surged 12.7% in February to 216,752 metric tonnes, driven by strong growth in metals mining, which expanded 17%. Glencore's Antapaccay mine saw a significant production increase of 219.4%, contributing to the country's position as a top global copper producer, despite being displaced by the DRC in 2023.
Mining executives push Chile for permit streamlining
Top mining executives have urged the Chilean government to expedite approval of permit streamlining proposal to bolster investment in the world's leading copper-producing nation. BHP and Rio Tinto stressed the need for swift action to facilitate both new projects and operational optimisations, highlighting challenges posed by the current permitting process.
Oil prices dip
Oil prices fell further on Wednesday due to concerns over global demand amid sluggish economic growth in China and anticipated increases in U.S. commercial inventories, despite tensions in the Middle East stoking supply worries.
Brent oil futures were down slightly by 0.59% to $89.49 per barrel. Crude oil WTI futures edged down by 0.71% to $84.75 per barrel at the time of reporting.
Natural gas prices down
Prices of natural gas were recorded at $1.690/MMBtu, down 2.42%.
Dollar index
The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 106.38, slightly up by 0.11%.
The rupee was recorded at INR 83.72 against the dollar, depreciating marginally against the previous closing.
