LME base metal prices and stocks mostly down; Nickel stocks up marginally
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Base metals prices on the London Metal Exchange (LME) displayed downtrend at the closing on Friday, 12 January.
Three-month aluminium futures inched down by 0.7% to settle at $2,219/tonne (t), nickel prices dipped marginally by 0.5% to $16,343/t, copper prices settled at $8,339/t, lead edged down slightly by 0.1% to $2,091/t. However, zinc increased marginally by 0.5% to $2,514/t. LME-registered warehouse stocks witnessed outflows barring nickel.
Aluminium prices dropped by 0.7, driven by concerns over China's economic conditions. The country's central bank is expected to boost liquidity and lower interest rates to counter deflationary pressures. The aluminium market also saw a 7% decline in premium for shipments to Japanese buyers due to sluggish demand.
Copper prices fell, impacted by a 30% surge in Shanghai copper inventories and a 6.3% drop in China's copper imports in 2023. Increased domestic production and a stronger U.S. dollar contributed. China's refined copper output rose to 13.3%, reaching 11.81 mnt.
COMEX market
Copper prices on the Commodity Exchange (COMEX) fell by 0.8% to $8,227/t from $8,293/t compared to the previous closing.
India's non-ferrous market
India's domestic aluminium scrap prices maintained stability as of the last trading day with limited inquiries and demand. A minor shortage in the northern market is anticipated to support prices in the near term for tense scrap. Likewise, as of 12 January, 2024, domestic copper prices have remained stable.
Global updates
India's 2023 auto exports drop
India's automobile exports faced a 21% decline in 2023, totalling 42,85,809 units compared to 52,04,966 in 2022, according to Siam data. Passenger vehicle shipments increased by 5% to 6,77,956 units, driven by launches and demand in South Africa and the Gulf. However, two-wheelers, commercial vehicles, and three-wheelers saw declines of 20%, 30%, and 30%, respectively.
UK home prices begin strongly
British home prices saw the strongest January start since 2020, with average asking prices up by 1.3% from 3 to 6 December, as per a survey. This surge signals a potential easing of the sector's slowdown as demand increased in January, with agreed sales up by 20% and buyer demand rising 5%.
Hong Kong property outlook 2024
Hong Kong property firms face a tough 2024 with rising funding costs and sluggish real estate markets. Major banks are cutting fresh financing to highly leveraged developers, pushing them towards pricier private credit. Funding challenges, coupled with slow home sales and high office vacancies, are expected to make this year more difficult for developers.
Codelco reports Q4 copper decline
Codelco, the world's largest copper producer, reported a decline in copper output for the last quarter of 2023, reaching 358,000 t compared to about 384,000 t in the same period in 2022. The production slump is attributed to mining mishaps and project delays, impacting the lowest levels in a quarter-century. The new CEO, aims to gradually increase output, with plans to reach over 1.7 million tons by 2030.
Press Metal expects Q4 growth
As per secondary sources, Press Metal Aluminium Bhd is expected to report Q4 2023 earnings between RM305 million and RM325 million, marking an 18% y-o-y increase, driven by stable aluminium prices. The firm anticipates a modest surplus in the aluminium market in 2024, leading to a positive outlook.
China's December copper rod production decline
According to secondary sources, China's refined copper rod production in December totaled 818,900 t, down by 38,600 t from November, with a 63.6% operating rate. East China produced 527,800 t at a 65.98% rate, while South China produced 139,300 t with a 65.42% rate.
Oil prices steady
Brent oil futures stood marginally up by 0.03% to $78.31 per barrel. Crude oil WTI futures were largely stable at $72.64 per barrel, at the time of reporting.
Natural gas prices dip
Prices of natural gas were recorded at $3.168/MMBtu, down by 4.38% at the time of reporting.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 102.39, slightly down by 0.02%, at the time of reporting.
At the time of reporting, the rupee was recorded at INR 82.84 appreciated marginally against the previous closing.
