LME base metals prices experience divergent trends amid stock outflows
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The closing prices of base metals on the London Metal Exchange (LME) exhibited diverse patterns on Monday, 29 January, 2024. Nickel experienced the most significant decline, dropping by 2%. Meanwhile, there was a decrease in stocks held in LME-registered warehouses.
Three-month aluminium futures dipped by 0.4% to $2,264/tonne (t), nickel prices fell by 2.1% to $16,439/t, copper prices settled at $8,558/t (up 0.1%), zinc edged down by 1.5% to $2,552/t and lead gained by 1.3% to $2,172/t.
COMEX market
Copper prices on the Commodity Exchange (COMEX) up by 0.5% to settle at $8,513/t compared to $8,469/t in the previous closing.
India's non-ferrous market
Aluminium
Copper
Domestic copper prices remained range-bound today; however, primary rods prices decreased amid a negative trend in futures prices which fell by 0.44%. Demand looks positive at present, with the market waiting for the upcoming Budget.
Global updates
Toyota tops global car sales for the fourth consecutive time in 2023
Toyota Motor announced on Tuesday that it achieved a record-breaking sales figure of 11.2 million vehicles in 2023, securing its position as the world's top-selling automaker for the fourth consecutive year. The 7.2% increase in global sales included contributions from Hino Motors and Daihatsu, with a notable 8.9 million vehicles sold internationally.
Japan's December unemployment drops to 2.4%
Japan's unemployment rate declined to 2.4% in December, surpassing expected median of 2.5%. The jobs-to-applicants ratio for the same month was 1.27, aligning with June 2022 levels and slightly below the forecasted median of 1.28, according to separate data from the labour ministry.
WTO considers downward revision amid global economic challenges
The World Trade Organization (WTO) is poised to reduce its 2023 and 2024 goods trade growth estimates, citing a sluggish global economy and potential Suez Canal disruptions. It was noted that the earlier projections of 0.8% and 3.3% appear overly optimistic, with updated figures expected in two months. While acknowledging headwinds, it was emphasized that the resilience of global trade, anticipating higher consumer prices due to increased shipping costs after Suez Canal disruptions. Inflation's impact in Europe is expected to be modest.
LME eyes Hong Kong for expansion
The LME is reportedly considering Hong Kong as a strategic location to expand its global metal warehouse network, aiming to eventually enter mainland China. Several industry participants have expressed interest, but obstacles include geopolitical risks and high storage costs in Hong Kong.
Nornickel forecasts further decline in nickel output for 2024
Nornickel, a major Russian metals producer, anticipated a continued decline in nickel output in 2024, citing geopolitical risks and postponed furnace repairs. In 2023, nickel production fell 5%, with projections for 2024 at 184,000-190,000 t, respectively.
Oil prices gain
Early in Tuesday's trading session, oil prices rebounded after a previous session that saw a decline of over 1%. The upswing was attributed to growing geopolitical tensions in the Middle East, a key region for oil production, heightening apprehensions about supply.
Brent oil futures were marginally up by 0.46% to $82.78 per barrel. Crude oil WTI futures rose by 0.53% to $77.19 per barrel at the time of reporting.
Natural gas prices up
Prices of natural gas were recorded at $2.061/MMBtu, up by 0.34%.
Dollar index
The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 103.52, slightly down by 0.09%.
The rupee was recorded at INR 83.11 against the USD, appreciating marginally against the previous closing.
