Base metals prices on LME witness mix trends; copper gain over 3%
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On Wednesday, 13 March, base metals prices on the London Metal Exchange (LME) showed a mixed trend at the end of trading, with copper notably experiencing a significant increase compared to the previous day. Meanwhile, stocks on the LME registered warehouses witnessed varied trends.
Three-month aluminium futures remained largely stable at $2,264/tonne (t), while nickel prices were at $18,346/t (down 1.11%). Copper prices settled at $8,927/t (up 3.1%), while zinc edged up by 0.5% to $2,576/t. Lead prices rose by 1.1% to $2,169/t.
Copper prices surged to a seven-month high after Chinese smelters, processing half of the global copper, agreed to cut production. China's smelters met in Beijing, deciding on symbolic cuts amidst concerns over concentrate shortages. Rising prices may impact Chinese demand, reflected in inventory increases.
COMEX market
Copper prices on the Commodity Exchange (COMEX) gained by 3.3% to $8,931/t from $8,645/t compared to the previous closing.
India's non-ferrous market
Spot prices for aluminium ADC12 alloy ingots surged by INR 2,000/t to INR 207,000/t w-o-w exw Delhi, driven by escalating local tense scrap prices in India. Tense offers in Chennai hit INR 173,000/t, with trade hovering at INR 172,000-172,500/t. Market dynamics indicate robust ADC12 prices, affecting mid-scale manufacturers' operations in the north.
Global updates
BOJ considers ending negative rates
The Bank of Japan may discuss ending its negative interest rate policy next week, pending strong results from a survey on wage talks. This potential shift could impact global markets, with signs of robust wage negotiations increasing the likelihood of stimulus phase-out. However, concerns over weak consumption may delay a decision until April.
UK economy rebounds, offers election relief
Britain's economy rebounded in January, growing by 0.2% m-o-m, following a brief recession in the latter half of 2023, according to official data. The uptick, driven by increased retail activity and house-building, offers relief to the government ahead of an anticipated election. Despite positive signs, it remains uncertain whether the economy has fully exited recession.
Chinese copper smelters cut production
Chinese top copper smelters agreed to jointly reduce production at some unprofitable plants due to raw material shortages. No specific rates were set; each smelter will decide on cuts. This comes amid a decade-low in copper concentrate processing fees. The move aims to alleviate supply tightness, exacerbated by global mine disruptions.
China's central bank expected to maintain policy rate
China's central bank is anticipated to maintain its key policy rate during the rollover of maturing medium-term loans on Friday, as per secondary sources. Most analysts expect stability in interest rates to prioritize yuan stability, despite calls for further stimulus amid economic challenges. The Fed's potential rate cuts may influence China's future policy adjustments, with expectations of monetary easing to support growth.
Oil prices range-bound
Brent oil futures were up slightly by 0.02% to $84.05 per barrel. Crude oil WTI futures were largely stable at $79.70 per barrel at the time of reporting.
Natural gas prices gain
Prices of natural gas were recorded at $1.666/MMBtu, up by 0.44%.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 102.89, slightly up by 0.10%.
The rupee was recorded at INR 82.87 against the USD, appreciating marginally against the previous closing.
