LME base metals prices witness varied trends; lead hits 15-month low

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

Three-month aluminium futures dipped by 0.09% to $2,225/tonne (t), nickel prices were at $16,261/t (up 1.3%), copper prices settled at $8,260/t (up 0.3%), zinc edged down by 0.2% to $2,320/t and lead prices dipped by 1.2% to $1,998/t.

Notably, lead stocks continued to witness inflows for the fifth consecutive day at the LME registered warehouses. Moreover, lead stocks witnessed an inflow by over 4% to 162,475 t from 155,925 t. Additionally, lead prices hit a 15-month low amid surging inventories.

Zinc prices fell, reflecting challenges in the market. Increased inventories, driven by reduced demand amid China's property market uncertainties, led to a 14% surge in LME stocks over the past 10 days. Shanghai Futures Exchange (SHFE) saw a 21% rise in zinc stocks.

COMEX market

Copper prices on the Commodity Exchange (COMEX) inched down by 0.3% to settle at $8,161/t compared to $8,184/t in the previous closing.

India's non-ferrous market

Aluminium

India's imported aluminium prices surged due to rising futures, limited availability, and increased demand. Aluminium scrap prices saw a $25-35/t increase weekly. Tense scrap from the Middle East (UAE) rose by $20/t to $1,720/t, while US scrap jumped by $30/t to $1,790/t. Zorba 95-5 from the UK faced challenges, boosting demand for Tense scrap. Domestically, raw material scarcity, notably Tense scrap, drove up prices.

Copper

Domestic copper armature scrap and secondary CCR (99.90%) prices rose, reflecting a 1% increase in MCX prices. Primary CCR prices reached INR 735,000/t ex-Delhi, up 2.1% alongside a 0.81% rise in LME prices to $8,300/t, at the time of reporting.

Global updates

Villager road blockade halts Zijin copper production

Zijin Copper halted production at its Serbian copper mine due to a road blockade by villagers. The blockade disrupted raw material supplies. The company sought dialogue to resolve the issue peacefully. The mine's increased activity has sparked safety concerns among residents, prompting protests and calls for relocation.

Indian primary aluminium producers report strong profits

India's primary aluminium producers have released their financials for 2023. NALCO exceeded third-quarter profit expectations with a nearly 84% surge in consolidated profit to $56.7 million. Meanwhile, Hindalco Industries, the flagship of Aditya Birla Group, recorded a 71% y-o-y increase in consolidated net profit in the December quarter.

Vedanta Aluminium unveils E-superstore: Vedanta Metal Bazaar

Vedanta Aluminium launched Vedanta Metal Bazaar, an e-superstore offering over 750 aluminium products with AI-based price discovery and live shipment tracking. It aims to simplify procurement, ensuring a seamless buying experience for B2B customers.

Hydro reports 2023 EBITDA, focuses on market challenges, expansion plans

Hydro's 2023, adjusted EBITDA totalled NOK 22,258 million, down from NOK 39,664 million in 2022, reflecting lower sales prices and volumes, higher fixed costs, and reduced contributions from power sales. The company aims to navigate challenging markets, exceed improvement targets, expand recycling capacity, and advance decarbonisation efforts, proposing a cash dividend and share buyback program.

U.S. January CPI report may delay fed rate cuts

U.S. January's CPI report, showing consumer inflation at 3.1% y-o-y, may delay anticipated rate cuts by the Fed. Core inflation remained at 3.9%. Despite pockets of easing like gas prices, rising shelter costs and services inflation persisted. Fed officials await housing inflation decline.

Oil prices inch down

Today, oil prices declined following a report from a U.S. industry organisation indicating a greater-than-anticipated increase in crude inventories last week. Additionally, investor optimism regarding potential interest rate cuts by the U.S. Federal Reserve diminished.

Brent oil futures were marginally down by 0.16% to $82.64 per barrel. Crude oil WTI futures were down by 0.08% to $77.79 per barrel at the time of reporting.

Natural gas prices dip

Prices of natural gas were recorded at $1.675/MMBtu, down by 0.83%.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 104.78, slightly down by 0.17%.

The rupee was recorded at INR 83.08 against the USD, depreciating marginally against the previous closing.