Base metals prices on LME display positive momentum

Non-ferrous metals prices on the London Metal Exchange (LME) witnessed uptrend. Three-month aluminium futures inched up by 2.6% to settle at $2,387/tonne (t), nickel prices gained by 2.6% to $16,938/t, copper prices edged up by 1.3% to $8,690/t, zinc prices gained by 1.5% to $2,641/t and lead prices went up by 1.1% to $2,086/t. Stocks on LME-registered warehouses witnessed mix trends.

Aluminium prices rose over 2%, driven by falling Chinese inventories and supply disruptions in Guinea. Concerns of alumina capacity cuts and reduced aluminium supply emerged. China's aluminium stocks reached a 2017 low, while interest rate cuts by major banks fueled expectations of economic support.

COMEX market

Copper prices on the Commodity Exchange (COMEX) gained by 1.3% to $8,689/t from $8,578/t compared to the previous closing.

India's non-ferrous market

The Indian aluminium scrap market has observed a surge in prices from the Middle East, coupled with limited transactions. Meanwhile, transactions in the western region, including the USA and the UK, have temporarily halted due to the absence of firm offers during the Christmas holidays. SteelMint's assessment for the Middle East tense scrap is at $1,640/t, with an increase of $65/t, w-o-w.

Copper scrap prices within the domestic market experienced a 1% increase as of yesterday. Nevertheless, market transactions continued at a sluggish pace, as the prevailing price did not appear workable for potential buyers.

Global updates

China's 14th five-year plan priorities

China is set on boosting domestic demand, ensuring a rapid economic rebound, and sustaining stable growth, as outlined in the interim report on the 14th five-year plan. Key priorities involve revitalizing and enlarging consumption, steadying bulk consumption, and expediting reforms to elevate the middle-income bracket. The agenda further encompasses market-oriented reforms, mitigating risks in real estate and finance, and progressing towards self-reliance in high-tech sectors.

WTO directs Turkiye to lift duties on US imports

In a crucial WTO ruling, Turkiye is directed to remove additional duties on U.S. imports, deeming them inconsistent with WTO policies. Stemming from the U.S. steel and aluminium tariffs, this decision has broader implications for international trade tensions, particularly impacting the global aluminium market, as per secondary sources.

India's 2023 housing sales soar 31%, setting record

Housing sales in India surged by 31% in 2023, reaching an all-time high of nearly 4.77 lakh units across seven major cities, as per secondary sources. Despite a 15% average price appreciation and higher mortgage rates, the market saw strong demand. Mumbai Metropolitan Region led in sales, rising 40%, and new launches across the top seven cities increased by 25%. Housing prices on average appreciated by 15%.

Indonesian nickel industry workers rally for safety after fatal fire

After a fire killed 19 workers at an Indonesian nickel smelter, hundreds of industry workers staged a rally demanding improved safety standards. Operations at the Morowali industrial park, where the incident occurred, remain unaffected. Worker representatives may consider strike action if their demands, including compliance with occupational health and safety laws, are not fully met. The smelter's operations are suspended during a police investigation. Indonesia's manpower ministry pledges to strengthen work safety laws.

Oil prices steady

Oil prices stabilized on Thursday following a notable decline in the prior session, as worries regarding shipping disruptions along the Red Sea lessened, despite ongoing escalations in tensions in the Middle East.

Brent oil futures went up by 0.13% to $79.75 per barrel. Crude oil WTI futures gained slightly by 0.07% to $74.12 per barrel, at the time of reporting.

Natural gas prices up

Prices of natural gas were recorded at $2.449/MMBtu, up by 0.49% 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 100.83, down slightly by 0.15% against the last closing.

The rupee was recorded at INR 83.23, appreciated against the previous closing.