Base metals prices on LME gain barring zinc; Stocks witness varied trends
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Most base metals prices on the London Metal Exchange (LME) saw an increase by the end of trading on Monday, 15 April, following new sanctions imposed by the US and UK on Russian materials, though zinc was an exception to this trend.
Three-month aluminium futures gained by 2.4% to $2,555/tonne (t), while nickel prices were at $17,846/t (up 0.28%). Copper prices settled at $9,576/t, while zinc edged down by 1.9% to $2,774/t. Lead prices were up by 0.41% to $2,185/t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) gained 2.8% to $9,613/t against the previous closing.
India's non-ferrous markets
Domestic copper prices rose by up to 1.5% yesterday. Armature scrap touched INR 760,000/t and secondary rods, INR 806,000/t, ex-Delhi. However, buyers bid for CCR below INR 800,000/t. Bids for primary CC rods touched INR 825,000/t, but sellers offered at INR 835,000/t, causing bid-offer disparities. Meanwhile, domestic aluminium scrap prices also saw a rise in prices amid an increase in futures.
Global updates
Aluminium prices surge amid sanctions
Aluminium prices surged, due to the US' and UK's sanctions on Russian metals, targetting revenue from exports, notably aluminium crucial for funding Russian military actions in Ukraine. Concerns about market uncertainty arose, with analysts warning of a potential influx of old stocks. Meanwhile, China's aluminium output in March rose by 4.19% y-o-y, signalling a production rebound post-Chinese New Year holidays.
UK wage growth slows, unemployment rises
British core wage growth slowed to its weakest level since September 2022, at 6.0% in the three months to February, according to official data. The Bank of England is likely to cautiously welcome the figures, as they remained strong historically. Unemployment rose to 4.2%, with vacancies declining for the 21st consecutive quarter.
Russian copper producer, Chinese firms evade sanctions
Russian copper producer, RCC and Chinese firms are reportedly avoiding taxes and evading Western sanctions by trading new copper wire rod disguised as scrap. The shredding of wire rod in China's Xinjiang region makes it difficult to distinguish from scrap, allowing both parties to profit from tariff differences. Chinese customs data show increased copper scrap imports from Russia since December, despite minimal exports reported by Russia.
Codelco pursues partnerships amid production challenges
Codelco, Chile's state-owned copper giant, seeks private sector partnerships to overcome production slumps and rising debt. Negotiations with Anglo American for an operational tie-up at Andina-Los Bronces aim to tap rich ore and share processing. Challenges include project delays and budget overruns, with management aiming to restore pre-pandemic production levels by the decade's end.
Oil prices gain
On Tuesday, oil prices climbed due to faster-than-anticipated growth in the Chinese economy, alongside increased tensions in the Middle East following Israel's announcement of a response to Iran's recent missile and drone attack over the weekend, keeping market sentiment uneasy.
Brent oil futures were up slightly by 0.3% to $90.37 per barrel. Crude oil WTI futures edged up by 0.33% to $85.69 per barrel at the time of reporting.
Natural gas prices gain
Prices of natural gas were recorded at $1.694/MMBtu, up 0.18%.
Dollar index
The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 106.41, slightly up by 0.19%.
The Indian rupee hit a new record low at the opening on Tuesday, following losses in other Asian currencies due to concerns about escalating tensions in the Middle East and expectations of a delayed interest rate cut by the Federal Reserve.
The rupee was recorded at INR 83.49 against the dollar, depreciating marginally against the previous closing.
