Base metals prices on LME see gain amid drop in inventories

Base metals prices, excluding aluminium, on the London Metal Exchange (LME) gained as of the last trading day. Meanwhile, the stocks at the LME registered warehouses witnessed outflows barring nickel.

Three-month aluminium futures gained by 2% to $2,669/tonne (t), while nickel prices were at $19,326/t (up 4.1%). Copper prices settled at $9,876/t, while zinc edged up by 1.4% to $2,852/t. Lead prices were up by 2.9% to $2,218/t.

Aluminium increased by 2.17% as sanctions on Russian metals heightened supply concerns. Washington and London's restrictions on LME and CME worsened shortages, with LME aluminium stocks at their lowest since August 2022. China's strong demand continued, with March imports up by 89.8%, driven by increased manufacturing activity and higher profitability.

COMEX market

Copper prices on the Commodity Exchange (COMEX) rose by 1.3% to $9,944/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

IRH offers $1 billion for Vedanta's Zambian copper stake

Abu Dhabi's International Resources Holding (IRH) offered over $1 billion for a 51% stake in Vedanta Resources' Zambian copper assets. This move aligns with the UAE and Saudi Arabia's strategy to secure metal supplies from Africa. Vedanta aims to sell part of its 80% stake in KCM to raise capital for asset revival.

Nornickel shuts Russian copper plant, plans new facility in China

Nornickel will close its copper plant in the Russian Arctic due to Western technology partners' refusal to supply parts. Instead, it plans to build a new plant in China by mid-2027 to reduce sulphur dioxide emissions. A joint project with BASF in Finland has been put on hold.

China keeps benchmark lending rates stable amid encouraging economic data

China maintained its benchmark lending rates unchanged at the monthly fixing, aligning with market forecasts. Encouraging first-quarter economic data reduced the urgency for monetary stimulus. Despite a stronger GDP growth surpassing 5%, factors like a weakening yuan and falling net interest margins constrained easing efforts. Both one-year and five-year loan prime rates remained steady.

Hindustan Zinc Ltd records 21% drop in Q4 net profit, maintains steady margins

Hindustan Zinc Ltd (HZL) saw a 21% y-o-y decline in Q4 net profit to INR 2,038 crore, mainly due to weak global zinc prices amid sluggish demand growth. Despite lower revenues of INR 7,285 crore (down 12% y-o-y), HZL maintained a steady 47% margin through cost reduction efforts. HZL reported record mined metal production for FY24.