Base metals prices on LME witness varied trends

Base metals prices on the London Metal Exchange (LME) depicted varied trends with the highest drop seen in nickel amid inflows in stocks. Meanwhile, stocks at LME registered warehouses majorly witnessed outflows barring nickel.

Three-month aluminium futures rose 0.7% to $2,245/tonne (t), nickel prices were at $17,662/t (down 1.3%), copper prices settled at $8,503/t (up 0.1%), zinc edged down by 0.3% to $2,417/t, and lead prices fell by 1.2% to $2,034/t.

Meanwhile, nickel stocks witnessed an inflow by 1.5% reaching 73,788 t from 72,630 t.

COMEX market

Copper prices on the Commodity Exchange (COMEX) gained marginally by 0.5% to $8,491/t from $8,447/t compared to the previous closing.

India's non-ferrous market

EU, US face off amid potential Russian ban

As of the previous week, imported and domestic aluminium scrap prices trended upward. Meanwhile, on the primary market P1020 prices moved up. Copper and zinc prices remained positive while lead prices remained almost stable.

Global updates

Cobre Ltd raises A$4 million

Cobre Ltd has successfully raised A$4 million in a placement, with strong backing from new and existing shareholders, including high-calibre institutional investors. The funds will be directed towards expediting exploration and development activities in the Kalahari copper belt in Botswana. The placement, at a 17.5% discount to the closing price on 29 February, 2024, signified market confidence in Cobre's strategic direction and the potential of its Botswana projects.

Chuquicamata Subterranea: operational challenges persist

Chile's Chuquicamata Subterranea faced operational challenges, including machinery breakdowns and construction errors, impeding its transformation into an underground mine. Codelco's chairman acknowledged shortcomings and vowed to improve maintenance and oversight. Delays plagued all four of Codelco's mega projects, raising concerns over the company's strategic direction and operational efficiency.

EU ban on Russian Aluminum sparks competition for Middle Eastern suppliers

If the European Union bans Russian Aluminum, competition between European and U.S. buyers for Middle Eastern aluminum could intensify, potentially leading to price hikes akin to those seen in 2018 when Rusal faced sanctions. This could impact industries reliant on aluminum, particularly in transportation, packaging, and construction.

China approves stimulus plan for economic revival

China's government approved a plan to boost large-scale equipment upgrades and consumer goods sales, aiming to strengthen the economy amid a sluggish recovery from the Covid-19 pandemic. The plan includes incentivising the replacement of old goods with new ones, with subsidies likely surpassing $5.6 billion. Analysts anticipate further fiscal support for investment as parliament convenes to discuss stimulus measures.

Oil prices up

Oil prices majorly inched up today following OPEC+ members' decision to prolong voluntary oil output reductions until the conclusion of the second quarter, which was broadly anticipated by the market. Additionally, Russia made a commitment to decrease both production and exports.