Base metals prices on LME remain positive amid drop in stocks

Base metals prices traded on the London Metal Exchange (LME) remained positive on Wednesday's closing, 12 April, with the highest gain seen in zinc prices. Meanwhile, stocks at LME registered warehouses majorly witnessed outflows barring nickel.

Three-month aluminium futures gained by 1.6% to $2,494/tonne (t), while nickel prices were at $17,797/t (down 0.08%). Copper prices settled at $9,457/t, while zinc edged up by 2.5% to $2,828/t. Lead prices were up by 1.5% to $2,176/t.

COMEX market

Copper prices on the Commodity Exchange (COMEX) remained steady at $9,350/t against the previous closing.

India's non-ferrous markets

Throughout the week, both domestic and global base metals markets experienced rising trends. Imported aluminium scrap markets sustained positive price levels, followed by domestic market. However, copper, zinc, and lead prices all witnessed rise.

Global updates

US, UK restrict Russian metals

New US and UK restrictions on trading Russian aluminium, copper, and nickel aimed to curb Putin's war funding. LME and CME bans on Russian supplies may affect global markets, but non-US buyers can still purchase. Metal prices could shift, impacting miners and traders.

In March, Russian-origin aluminium constituted 91% of LME warehouses, reflecting market stability. With 40% of LME metal stocks originating from Russia, stakeholders confront geopolitical tensions impacting decision-making, notably with Rusal's presence.

Japan's machinery orders rebound

In Japan, core machinery orders surged 7.7% in February, exceeding expectations and signalling a rebound in domestic demand. Despite concerns over a weakening yen and global uncertainties, higher profits and wages are driving increased investment, supporting a shift towards monetary policy normalisation.

China holds MLF rate steady

China's central bank kept the key MLF rate unchanged, signalling stability amid economic uncertainties and U.S. rate cut speculations. Cooling inflation and slowing credit expansion suggested a need for stimulus. The move follows a decline in the yuan and sluggish economic indicators.

China's exports, imports decline

China's March exports dropped 7.5%, while imports fell by 1.9%, pointing to sluggish domestic demand. Despite support measures, economic growth remained uneven, hindered by a protracted property crisis and trade challenges. Policymakers aim to shift towards hi-tech and clean energy, but Fitch has cut China's credit rating outlook to negative.

US economic growth spurs concerns

In the U.S., economic growth above potential supports global expansion, yet high inflation and tight monetary policy pose risks. Recent data show persistent inflation, strong GDP growth, and uncertainty about rate cuts. IMF meetings may focus on whether U.S. success is sustainable and its impact on global policy.