Base metals prices on LME drop barring lead; stocks witness varied trends
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On Tuesday's closing, 19 March, base metals prices on the London Metal Exchange (LME) witnessed drop barring lead. Meanwhile, stocks on the LME registered warehouses showed varied trends with lead experiencing highest inflows among all base metals.
Three-month aluminium futures dipped by 0.3% to $2,269/tonne (t), while nickel prices were at $17,395/t (down 2.6%). Copper prices settled at $8,976/t (down 1.2%), while zinc edged down by 1.07% to $2,505/t. Lead prices gained by 0.1% to $2,093/t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) dipped by 1.5% to $8,953/t from $9,085/t compared to the previous closing.
India's non-ferrous market
Despite a slight dip in LME prices to $2,250/t, Indian market's aluminum scrap prices remained resilient, showing a marginal increase of up to 0.9%. Tense scrap from the UAE climbed $10/t to $1,835/t, while zorba 95/5, UK origin, held steady at $2,040/t CFR Mundra. Supply constraints and high demand from Asia are elevating prices, squeezing profit margins for alloy producers amidst shipping route conflicts and freight rate fluctuations.
Domestic aluminum market saw tense scrap prices at premiums of INR 180,000/t, while BigMint's assessment was at INR 179,000/t ex-Delhi. Gujarat reported prices at INR 177,000/t for immediate payment. Meanwhile, copper prices remained stable as of yesterday.
Global updates
China maintains benchmark rates amid economic challenges
China maintained its benchmark lending rates in line with expectations, with the one-year loan prime rate at 3.45% and the five-year rate at 3.95%. Economic challenges persist despite improved factory output and retail sales, as property investment continues to decline. Further stimulus may be needed to meet the ambitious 5% growth target for 2024.
Peru's copper production dips in January
Peru, the world's second-largest copper producer, witnessed a 1.2% decline in January's production to approximately 205,375 metric tons. This drop follows decreased output from key mines like MMG's Las Bambas and Freeport-McMoRan's Cerro Verde. Despite this, the country aims for 3 million tonnes (mnt) in 2024, as stated by Mining Minister Romulo Mucho.
Volcan suspends mines for permit update
Peruvian mining company Volcan, backed by Glencore Plc, will suspend operations at three mines for up to 30 days to update an operating permit for its Rumichaca tailings dam. The affected mines produce zinc, lead, silver, and copper, crucial to Peru's economy, with sales accounting for 60% of its exports.
LME plans Jeddah delivery point
The LME is planning to add Jeddah, Saudi Arabia, as a new delivery point for copper and zinc, pending a technical change to its warehouse location framework. This decision aligns with Saudi Arabia's strategic industrial and logistical development under Vision 2030. The proposal awaits consultation until 30 April.
Oil prices dip
Brent oil futures were down slightly by 0.3% to $87.12 per barrel. Crude oil WTI futures were down by 0.4% to $83.13 per barrel at the time of reporting.
Natural gas prices down
Prices of natural gas were recorded at $1.743/MMBtu, down by 0.06%.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 103.89, slightly up by 0.44%.
The rupee was recorded at INR 83.06 against the USD, depreciating marginally against the previous closing.
