Base metals prices on LME witness mixed trends; lead stocks rise

On 20 March, 2024 base metals prices on the London Metal Exchange (LME) witnessed mix trends. Meanwhile, stocks at LME-registered warehouses witnessed inflows with lead experiencing the highest inflow.

Three-month aluminium futures inched up by 0.1% to $2,273/tonne (t), while nickel prices were at $17,492/t (up 0.5%). Copper prices settled at $8,928/t (down 0.5%), while zinc edged down by 0.1% to $2,508/t. Lead prices dipped 1.39% to $2,064/t.

COMEX market

Copper prices on the Commodity Exchange (COMEX) dipped 0.5% to $8,909/t from $8,953/t compared to the previous closing.

India's non-ferrous market

Aluminium ADC12 alloy ingot spot prices rose by INR 1,000/t to INR 208,000/t in Delhi, driven by constrained scrap supply and overseas market trends. Chennai offers were at INR 180,000/t with trades heard at around INR 178,000-179,000/t. Manufacturers face challenges due to limited scrap availability, hindering new orders. Prospective price hike announcements from major automobile companies are awaited.

Meanwhile, copper prices in the domestic market remained largely stable as of yesterday.

Global updates

Japan's factory activity signals slower contraction

Japan's factory activity contracted at a slower pace in March, while robust expansion in the services sector bolstered overall private sector growth, following the Bank of Japan's historic policy shift. The manufacturing PMI rose to 48.2, showing a softer decline, while services expanded at the fastest rate in 10 months, with a PMI of 54.9. Price pressures persisted, with input cost inflation reaching its highest level since last September.

Recent updates from Hydro

Scatec, Equinor, and Hydro Rein are collaborating on a 531 MW solar plant in Brazil to provide electricity to Hydro's Alunorte refinery. Alunorte will purchase 60% of the power through a 20-year PPA, supporting its decarbonisation efforts. The partners have an equal stake in the venture.

Johan Berg, who heads Hydro's aluminium operations in Norway, oversaw the final phase of upgrading the electrolytic cells at Hydro Husnes, improving energy efficiency and cutting greenhouse gas emissions to meet market demand for eco-friendly aluminium. This upgrade coincides with infrastructure enhancements, securing long-term production.

Hydro is divesting its Kaunas plant with 170 workers, ensuring a seamless transition under new ownership led by Paulius Velicka, with all rights and responsibilities transferring. The sale is expected to finalise by Q1 2024.

Hydro has teamed up with Sims Alumisource to refine post-consumer scrap processing for extrusion billet casting, granting access to an additional 36,000 t of recycled material. This aligns with Hydro's sustainability objectives, fostering a circular economy.

Uncertainties in BHP's Kalgoorlie nickel division

BHP has cut contractors at its Kalgoorlie nickel smelter and deferred plans for a 1,000-bed camp amid uncertainties. CEO Mike Henry has promised clarity on the division's future. The move aligns with cost-cutting efforts, considering potential mothballing of the entire nickel division amidst financial challenges and infrastructure refurbishment needs.

Barrick to explore copper deposits in DRC

Barrick Gold plans to explore new gold and copper deposits in the Democratic Republic of Congo (DRC) in collaboration with the government, following its success at the Kibali gold mine. The company aims to continue investing in the region, transforming it into an economic hub. The company has highlighted the company's significant investment in the DRC, with a focus on supporting local contractors and suppliers. Additionally, Barrick intends to expand its presence in the African copper belt, including Zambia and the DRC.