Base metals prices on LME edge up amid declining inventories

Base metals prices traded on the London Metal Exchange (LME) remained positive on Wednesday's closing, 10 April, with the highest gain seen in nickel prices. Meanwhile, stocks at LME registered warehouses witnessed outflows.

Three-month aluminium futures gained by 1.2% to $2,485/tonne (t), while nickel prices were at $18,800/t (up 4.4%). Copper prices settled at $9,490/t, while zinc edged up by 2.5% to $2,768/t. Lead prices were up by 0.8% to $2,175/t.

COMEX market

Copper prices on the Commodity Exchange (COMEX) remained steady at $9,415/t against the previous closing.

India's non-ferrous markets

Aluminium domestic scrap prices were stable as of yesterday. Meanwhile, copper prices witnessed slight gains amid a rise in LME prices.

Global updates

ECB eyes preemptive rate cut

The European Central Bank is expected to maintain record-high borrowing costs, signalling a potential rate cut by June due to sluggish inflation and economic weakness. Despite uncertainty regarding US Federal Reserve policy, the ECB anticipates preemptive action to avoid credibility issues.

US March inflation surge spurs rate-cut delay

US consumer prices surged more than expected in March, driven by higher gasoline and rental housing costs. This, along with strong job growth, led to speculation of a Fed rate cut delay until September, despite concerns over persistently high inflation. Stocks dropped, the dollar rose, and Treasury yields climbed.

China's March inflation eases

China's consumer inflation eased more than expected in March, while producer prices continued to deflate, underscoring the need for further stimulus amid weak demand. Despite improvements in factory surveys, overcapacity issues persist.

WTO forecasts global trade rebound

The World Trade Organisation (WTO) predicts a gradual rebound in global goods trade, with a projected 2.6% increase in 2024 and 3.3% in 2025, following a 1.2% decline in 2023. However, geopolitical tensions, protectionism, and the Middle East crisis pose risks, potentially fragmenting trade routes and impacting energy prices.

BHP set to lead copper industry

BHP Group is poised to become the new leader in the copper industry, surpassing Codelco in global producer rankings, according to secondary sources. The surge in production at BHP's Escondida mine in Chile is expected to propel the Australian company ahead of Codelco this year, ending the Chilean state-owned company's dominance as the top producer.