Base metals prices on LME majorly up; stocks witness mixed trends

COMEX market

Copper prices on the Commodity Exchange (COMEX) gained by 0.3% to $8,645/t from $8,623/t compared to the previous closing.

India's non-ferrous market

Imported aluminium scrap prices in the Indian market are climbing due to several factors, including higher LME levels for aluminum, scarcity of material globally and domestically, and rising freight rates. LME prices reached around $2,260/t, up $40/t w-o-w, with stocks declining by 1%. Aluminium scrap prices rose by up to 2.6%. Meanwhile, copper prices in the market witnessed slight improvement as of yesterday.

Global updates

Indian industrial output: January overview

Indian industrial output grew by 3.8% y-o-y in January, falling short of expectations of 4.1%. Manufacturing output rose by 3.2%, down from 4.5% the previous year. Electricity generation increased by 5.6%, while mining activity grew by 5.9%. Consumer durables saw robust growth at 11%, but non-durables slipped slightly by -0.3%.

Japan prepares for interest rate shift

Japanese financial markets are on the brink of a historic shift with rising interest rates looming after decades of stagnation. Bankers are preparing for the change as the Bank of Japan is expected to exit negative short-term rates by June. This signifies a significant move away from long-standing monetary policies towards a more normal economic environment. The potential shift is seen as a positive development for Japan's economy and global markets.

Nickel, tin markets disrupted by Indonesian permit delays

Indonesian delays in approving work permits are affecting nickel and tin markets, with exports plummeting. Tin supply from Indonesia and Myanmar faced disruption due to export controls and mining audits. Despite a surplus last year, tin prices surged, up 9.0% since January, raising concerns over future supply fragility amid resource nationalism.

Global copper smelters inactive, China's role dominates

As per secondary sources, more global copper smelters were inactive in January and February compared to last year, primarily due to Chinese inactivity. China's inactive capacity rose to 8.3%, with major smelters like Baotou and Kunming not operating. Minor outages were also noted in Australia's Olympic Dam and Chile's Chuquicamata.