Base metals prices on LME gain amid outflows in stocks

The prices of base metals on the London Metal Exchange (LME) experienced an upward trend by the end of trading on Monday, 8 April. This increase was attributed to positive macroeconomic developments from the US on the previous Friday, surpassing expectations. Meanwhile, the stocks on LME registered warehouses witnessed outflows.

Three-month aluminium futures inched up by 0.4% to $2,462/tonne (t), while nickel prices were at $17,875/t (up 0.4%). Copper prices settled at $9,419/t, while zinc edged up by 0.9% to $2,663/t. Lead prices were up by 0.6% to $2,136/t.

COMEX market

Copper prices on the Commodity Exchange (COMEX) gained by 0.9% to $9,393/t from $9,305/t at the previous closing.

India's non-ferrous markets

India's domestic non-ferrous market prices remained positive as of yesterday amid an increase in LME futures.

Global updates

Futures traders trim rate cut expectations

LSEG data indicate futures traders have lowered expectations for Federal Reserve rate cuts, now around 60 basis points for 2024 compared to 150 at the year's start. Doubts persisted on timing and depth of cuts amid economic strength. Treasury yields rose. Investors await March's CPI release for rate insights.

China's Tomb-Sweeping holiday spending

During China's recent Tomb-Sweeping holiday, domestic travelers spent $7.5 billion, with per capita spending reaching $60.14, exceeding levels from five years ago. Analysts see this as a positive sign for the economy, indicating strengthened consumer confidence amidst ongoing challenges like a property market downturn and high youth unemployment.

Metal prices surge amid manufacturing optimism

Copper, zinc, and aluminum prices surged at the quarter's start on signs of a manufacturing rebound. US and Chinese output improved, but doubts lingered amid geopolitical tensions and uncertainty over interest rate cuts. ECB's reaction function in focus ahead of crucial inflation data and earnings season kickoff.

Trafigura forecasts rising copper demand from AI and energy transition

Commodity trader Trafigura forecasted that copper demand from AI and data centers could add one million metric tons by 2030, exacerbating supply deficits. The energy transition towards electric vehicles and renewable energy technologies is expected to drive increased copper consumption. China's dominance in copper production raised concerns about Western countries meeting their net zero targets.