Base metals prices on LME majorly down; stocks witness outflows

Base metals prices on the London Metal Exchange (LME) majorly dropped barring nickel prices as of the last closing. Meanwhile, stocks at the LME registered warehouses witnessed outflows across all the base metals.

Three-month aluminium futures dipped by 0.5% to $2,240/tonne (t), nickel prices were at $18,011/t (up 0.1%), copper prices settled at $8,579/t (down 0.7%), zinc edged down by 0.3% to $2,527/t, and lead prices fell by 0.1% to $2,104/t.

COMEX market

Copper prices on the Commodity Exchange (COMEX) fell by 0.8% to $8,557/t from $8,623/t compared to the previous closing.

India's non-ferrous market

During this week, the domestic and global base metal markets synchronised. Both imported and domestic aluminum scrap markets maintained elevated levels. Additionally, there was an uptick in prices observed in the copper, zinc, and lead markets.

Global updates

China's February consumer price dynamics

China's consumer prices rose 0.7% in February, the first increase in six months, attributed to Lunar New Year spending. However, factory-gate prices fell 2.7%, extending over 1.5 years of decline. Weak demand persisted, posing deflation risks despite policy measures aimed at stimulating growth.

U.S. February job growth, unemployment

U.S. job growth surged in February, with non-farm payrolls adding 275,000 jobs, although the unemployment rate rose to 3.9%. Despite solid payroll gains, a decline in household employment signalled underlying softness. The mixed report increases the likelihood of a Federal Reserve rate cut by June.

Bank of Japan considers ending negative rates

Growing support within the Bank of Japan suggested the potential end of negative interest rates this month, driven by anticipated wage hikes. Uncertainty remains regarding the timing, with upcoming data influencing decisions. Potential policy changes include shifting away from yield control.

German industrial output rises in January

Germany's industrial output rose by 1.0% in January, surpassing expectations, suggesting a potential end to the manufacturing recession. However, revisions and a 1.5% decline in the three-month rolling average indicate ongoing struggles.

CME's booming aluminium contract reflects Atlantic market shift

The CME's aluminium contract shows a changing global market, gaining traction in North America amid geopolitical shifts. Rising volumes and user expansion indicate its significance. The emergence of a North American pricing point suggests a departure from London and Shanghai dominance. While not necessarily detrimental to these markets, regional price formation reflects the evolving geopolitical reality and the drift toward trading blocs, as per secondary sources.

Oil prices dip

Brent oil futures down slightly by 0.34% to $81.80 per barrel. Crude oil WTI futures down by 0.42% to $77.68 per barrel at the time of reporting.

Natural gas prices gain

Prices of natural gas were recorded at $1.817/MMBtu, up by 0.66%.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 102.70, slightly down by 0.02%.