Base metals prices on LME see positive trends barring lead

On 21 March, 2024 base metals prices on the London Metal Exchange (LME) witnessed positive trends. Meanwhile, stocks at LME-registered warehouses witnessed varied trends.

Three-month aluminium futures inched up by 1.2% to $2,301/tonne (t), while nickel prices were at $17,541/t (up 0.2%). Copper prices settled at $8,950/t (up 0.2%), while zinc edged up by 0.6% to $2,524/t. Lead prices dipped 0.6% to $2,050/t.

COMEX market

Copper prices on the Commodity Exchange (COMEX) remained largely stable at $8,909/t compared to the previous closing.

India's non-ferrous market

Domestic copper prices surged w-o-w, with armature at INR 715,000/t and secondary CCR rods at INR 758,000/t. Primary CC rods reached INR 788,000/t. Futures markets saw highs, LME hitting $9,000/t, SHFE at $10,770/t. Imported scrap rose by 1.8%, notably Middle East brass honey scrap to $5,680/t. Meanwhile, domestic aluminium scrap prices remained largely stable as of yesterday.

India's zinc and lead prices remained stable, constrained by subdued market activity ahead of the fiscal year-end and Holi holidays. Middle East zinc diecast (5%) was traded at $1,990/t CFR Mundra.

Global updates

EGA acquires German aluminium recycler

Emirates Global Aluminium (EGA) announced the acquisition of Leichtmetall, a German aluminium recycling firm, marking EGA's first major acquisition since its formation. The move aligns with EGA's goal of expanding its recycling business in Europe, contributing to a circular economy and reducing carbon emissions. The acquisition is expected to close in the first half of 2024, pending regulatory approval.

Japanese inflation: core up, broader trends slowing

Japan's core inflation rose 2.8% in February, but broader price trends slowed, prompting uncertainty over the timing of the central bank's next interest rate hike. The Bank of Japan's exit from its stimulus programme raises questions about future rate increases amidst tepid domestic demand and cautious economic indicators.

India rejects Hindustan Zinc's division plan

India rejected Hindustan Zinc's proposal to split into separate units for zinc, lead, silver, and recycling businesses. The government, a major shareholder, was not consulted and deemed the plan unlikely to benefit shareholders. This follows the government's opposition to Hindustan Zinc's proposal to acquire two Vedanta entities earlier.

Flooding halts zinc production: Glencore's McArthur River mine impacted

Flooding has prompted Glencore to halt operations at its McArthur River mine, a significant zinc and lead producer. This, coupled with suspensions at Volcan's Peruvian mines and delays in Russian and European zinc mines, are expected to impact the supply of zinc concentrates used for refining zinc, crucial for steel galvanisation.

Abu Dhabi firm eyes Zambia's Lubambe mine

A unit of Abu Dhabi's International Holding Company aims to acquire Zambia's Lubambe copper mine, challenging a deal by China's JHCX Mining. The move reflects Middle East investors' interest in African mineral resources amid a push for economic diversification. EMR Capital's agreement with JHCX may complicate the sale process.