Base metals prices on LME witness varied trends; stocks record outflows

On Friday's closing, 15 March, base metals prices on the London Metal Exchange (LME) showed mixed trends, with copper notably experiencing a significant increase compared to the previous day. Meanwhile, stocks on the LME registered warehouses witnessed outflows.

Three-month aluminium futures rose by 1.02% to $2,274/tonne (t), while nickel prices were at $18,074/t (down 0.02%). Copper prices settled at $9,072/t (up 2.08%), while zinc edged up by 0.5% to $2,561/t. Lead prices fell by 1.3% to $2,129/t.

India's non-ferrous market

During this week, the domestic and global base metals markets were in synchrony. Both imported and domestic aluminum scrap markets maintained positive price levels.

Global updates

China's economy: strong start, housing stabilises

China's industrial output surged 7.0% y-o-y in January-February, surpassing December's 6.8% growth and beating expectations, offering relief to policymakers. Retail sales rose 5.5%, down from December's 7.4%, while fixed asset investment expanded 4.2%, exceeding forecasts. These figures signal a robust start to 2024 for China's economy.

China's housing market showed signs of stabilisation as property investment declined 9.0% y-o-y in January-February 2024, slower than December's 24.0% drop. Property sales fell 20.5%, less than December's 23.0%. Analysts caution against prematurely declaring an end to the downturn. Government measures aim to revive the sector, but challenges persist.

BHP considers halting nickel division

BHP Group revealed that some contractors at its West Musgrave nickel and copper project in Western Australia have departed amid considerations to halt its nickel division due to plummeting prices. About a quarter of the site's contractor workforce, roughly 100 people, were affected as the company reevaluates project development and capital spending. The decision follows BHP's review of the mine's timeline and recent warnings about challenges in the nickel sector.

Yunnan aluminium smelters resume production

Aluminium smelters in China's Yunnan province are resuming operations due to improved power availability, potentially restoring 500,000 metric tons of annual production. China Southern Power Grid allocated additional power to the industry, prompting the ramp-up. Yunnan had curbed operations in November due to lower hydropower supply.

Peru's economy grows in January, short of forecast

Peru's economy showed signs of growth in January, expanding by 1.37% compared to the same period last year, according to the INEI statistics agency. While this indicates progress toward recovery from recession, it fell short of the 1.70% growth forecast.

The construction sector led the expansion with 13.16% growth, supported by a 3.96% increase in the mining and hydrocarbons sector, driven by metals mining. However, copper production, a significant contributor, slightly declined by 0.33%. Despite challenges, the Peruvian central bank anticipates positive quarterly growth in early 2024.