Base metals prices on LME see downtrend barring lead; stocks witness outflows

Base metals prices, excluding aluminium, on the London Metal Exchange (LME) witnessed a downward trend barring lead. Meanwhile, the stocks at the LME registered warehouses saw outflows barring nickel.

Three-month aluminium futures dipped by 3.4% to $2,579/tonne (t), while nickel prices were at $19,006/t (down 3.7%). Copper prices settled at $9,706/t, while zinc edged down by 1.4% to $2,792/t. Lead prices were up by 0.6% to $2,184/t.

COMEX market

Copper prices on the Commodity Exchange (COMEX) were down by 0.9% to $9,811/t against the previous closing.

India's non-ferrous market

Aluminium scrap prices in India rose amid higher LME futures, reaching $2,600/t. Sanctions on Russian metals and supply chain concerns lifted prices. Meanwhile, BigMint's assessment for tense scrap in the domestic market stood at INR 192,000/t. This reflected a slight increase of 3.2% from the previous week's INR 186,000/t, ex-Delhi.

Global updates

Sanctions spark metal market turmoil

Following the US and the UK's sanctions on Russian metal, a surge in cancelled aluminium contracts drained LME stocks. New rules split Russian metal into two warrant types, influencing trading dynamics. Warehousers may benefit from extended storage, while traders navigated potential disruptions. The turmoil pushed the LME cash-to-three-months spread into backwardation, reflecting uncertainty in the market amid regulatory shifts.

Vedanta seeks partners for Konkola

Vedanta Resources is in talks with potential partners to secure funds for its Konkola copper mine assets in Zambia. While Dubai-based IRH offered $1 billion for a 51% stake, Vedanta remained committed to its majority ownership.

The US' home sales rebound

The US' new single-family home sales rebounded in March, driven by low inventory of existing homes, but higher mortgage rates and prices may curb momentum. Sales increased by 8.8% to 693,000 units, yet rising rates dampen affordability. Median house prices hit a seven-month high, with sales shifting to higher-priced homes, impacting first-time buyers.

Eurozone PMI surges amid service sector growth

Eurozone PMI surged to 51.4 this month from March's 50.3, marking its highest level in nearly a year. The robust growth in the service sector overshadowed a persistent decline in manufacturing, according to a survey. Germany and France exhibited a split between services and manufacturing. Overall, optimism remained strong, with firms ramping up hiring at the fastest pace since June last year.

Japan's factory activity nears break-even in April

Japan's factory activity approached the break-even point in April, with the au Jibun Bank flash PMI rising to 49.9 from 48.2 in March, its highest level since June. The service sector accelerated, pushing the composite PMI to 52.6, matching the highest level since August.