LME base metals prices witness mixed trends; aluminium, lead stocks gain over 2%

Base metals prices on the London Metal Exchange (LME) depicted varied trends as of yesterday's closing. Simultaneously, LME warehouse stocks witnessed mixed trends, with the highest inflow recorded for lead followed by aluminium.

Three-month aluminium futures dipped by 0.4% to $2,224/tonne (t), nickel prices were at $16,258/t (down 0.5%), copper prices settled at $8,314/t (up 1.4%), zinc edged up by 1.8% to $2,354/t, and lead prices gained marginally by 1.2% to $2,042/t.

Notably, lead stocks continued to witness inflows at LME registered warehouses. Lead stocks witnessed an inflow by over 2% at 173,075 t from 168,727 t. Meanwhile, aluminium stocks also noted a rise by 2.4% to 538,075 t from 525,100 t.

COMEX market

Copper prices on the Commodity Exchange (COMEX) gained by 1.4% to settle at $8,249/t compared to $8,139/t in the previous closing.

India's non-ferrous market

India's domestic aluminium scrap prices remained stable as of yesterday. Meanwhile, copper armature scrap prices witnessed a marginal rise of 0.4% to INR 673,000/t, ex-Delhi. However, prices of primary and secondary CCR remained stable, as per BigMint's assessment.

On the other hand, India's zinc and lead prices dropped 4% w-o-w, following a 2% w-o-w decrease in LME futures, driven by an 18% inventory surge. HZL cut zinc and lead ingot prices by up to INR 10,600/t, impacting domestic spot rates. Middle East zinc diecast declined 0.5% to $1,905/t, CFR Mundra.

Global updates

U.S. factory production declines

U.S. factory production unexpectedly dropped by 0.5% in January due to harsh winter weather, contrary to forecast of no change. Manufacturing PMI showed slight contraction in January, reflecting the sector's struggle after multiple interest rate hikes. Motor vehicle output declined, while durable goods manufacturing edged up. Mining output fell 2.3%, but utilities production rebounded.

U.S. import prices rise

U.S. import prices rose by 0.8% in January, the most in nearly two years, driven by higher costs for petroleum and other goods, posing challenges in the fight against inflation. Excluding tariffs, prices rose 0.7%, while export prices rebounded by 0.8% after a decline in December.

Guinea Alumina Corporation plans expansion

Guinea Alumina Corporation, backed by Emirates Global Aluminium, is planning to establish a 1 million tonne (mnt) alumina refinery in Guinea, tapping into the nation's rich bauxite resources. Funding efforts, including support from various investors and financial institutions, are underway to bolster the project's development.

South32 invests $2.16 billion in Arizona's zinc mine project

South32 committed $2.16 billion to develop the Hermosa prospect in Arizona's Patagonia mountains, aiming to produce zinc ore by 2027. The project, heralded as the largest private investment in southern Arizona's history, faced regulatory hurdles amid concerns over its environmental impact and water management.