Base metals prices, stocks on LME move southward

The London Metal Exchange (LME) witnessed a decline in the entire range of base metals at the 5 pm close on Tuesday, 26 March. Meanwhile, stocks at LME registered warehouses witnessed outflows barring lead.

Three-month aluminium futures inched down by 0.6% to $2,303/tonne (t), while nickel prices were at $16,640/t (down 2.7%). Copper prices settled at $8,862/t, while zinc edged down by 1.6% to $2,442/t. Lead prices dipped 0.5% to $2,020/t.

COMEX market

Copper prices on the Commodity Exchange (COMEX) remained largely stable at $8,799/t compared to the previous closing.

India's non-ferrous market

India's non-ferrous market prices stayed mostly unchanged, with no trading activities reported due to the Holi holidays. The market is still in a subdued state, yet to pick up momentum following the holiday period.

Global updates

China's industrial profits rise 10.2%

China's industrial firms saw a 10.2% rise in profits in the first two months of the year, indicating a strengthening economic recovery despite ongoing challenges in the property sector. While state-owned firms reported a modest rise, foreign and private-sector companies recorded substantial gains.

U.S. durable goods orders rise

Orders for durable goods in the U.S. rose 1.4% in February, surpassing expectations and indicating a potential recovery in manufacturing. However, concerns over the upcoming presidential election persisted, as reflected in a Conference Board survey. Non-defense capital goods orders excluding aircraft increased by 0.7%, suggesting tentative signs of business spending improvement.

RBI expected to hold rates

As per secondary sources, the Reserve Bank of India (RBI) is expected to maintain interest rates at 6.50% until at least July, citing robust growth and persistent inflation near the upper threshold of the central bank's target range. Analysts are divided on the timing of the first rate cut.

Funds rush into copper amid price breakout

Fund managers are rushing to buy copper following its breakout from a year-long trading range, driving a surge in activity across global exchanges. Long positions on the CME copper contract saw a 43% increase, reaching their highest level since May 2021. Investment funds are also heavily betting on higher prices in the London market. Chinese smelters' commitment to curb output amid supply concerns has further fuelled bullish sentiment.