LME base metals witness divergent trends in prices and stocks

Non-ferrous metal prices on the London Metal Exchange (LME) experienced uptrend. Three-month aluminium futures rose by 3.3% to settle at $2,210/tonne (t), nickel prices gained 3.1% to $16,972/t, copper prices edged up by 2.6% to $8,551/t, zinc prices edged up by 2.8% to $2,493/t, and lead prices went up by 1.7% to $2,069/t. Stocks on LME-registered warehouses witnessed mix trends.

COMEX market

Copper prices on the Commodity Exchange (COMEX) rose by 1.6%, reaching $8,557/t compared to the previous closing at $8,425/t.

India's non-ferrous market

India's domestic aluminium market remained range-bound yesterday, with moderate activity reported in the market. On the other hand, domestic copper prices rose by 1.4%. LME futures were stable at $8,330/t. Buyers were moderately active and imported copper motor mix scrap of the US origin was heard at $1,060/t CIF Mundra, revealing bid-offer disparity.

Global updates

China's property and retail challenges

China's property sector weakened in November due to negative home buyer sentiment and struggling developers, impacting sales and investment. The broader retail sector also fell short of forecasts, indicating the need for additional support to bolster demand amid economic challenges and slowed momentum.

PBOC holds rates, stimulus anticipation

China's central bank, the People's Bank of China (PBOC), maintained their interest rates on one-year medium-term lending facility (MLF) loans at 2.50%, in line with expectations. Despite the unchanged rate, market anticipates continued accommodative policies and potential stimulus, including interest rate cuts, to support the economy in 2024.

Alcoa gains approval for bauxite mining, commits to environmental safeguards

Alcoa welcomes the Western Australian Government's approval for its 2023-2027 Mining and Management Program, allowing bauxite mining continuity. Stringent environmental conditions include enhanced drinking water protections. Alcoa commits to modernizing agreements and providing a A$100 million guarantee. The company aims for a balanced approach, aligning with evolving community expectations.

U.S. November retail sales rise challenges rate cut expectations

U.S. retail sales unexpectedly rose by 0.3% in November, signaling a robust start to the holiday shopping season and reinforcing consumer resilience amid deep discounts. The rebound, reported by the Commerce Department, challenges market expectations for an early rate cut, suggesting a steadier economic trajectory.

Metro mining hits 4.51m t bauxite milestone amid cyclone setback

Metro Mining Limited achieved a milestone, producing and shipping 4.51 million Wet Metric Tons of bauxite since April 2023, aligning with their sales guidance. Despite temporary setbacks due to Tropical Cyclone Jasper, operations continue, with a focus on safety. Further updates will be provided as conditions improve, ensuring swift resumption of shipping operations. Bauxite, a key resource for aluminum production, holds significance in the global energy transition.

Oil prices gain

Friday saw an increase in oil prices, poised for their first weekly gain in two months. This uptick follows a positive outlook on next year's oil demand from the International Energy Agency (IEA) and a decline in the dollar.

Brent oil futures went up by 0.42% to $76.93 per barrel. Crude oil WTI futures rose slightly by 0.41% to $71.87 per barrel, at the time of reporting.

Natural gas prices edge up

Prices of natural gas were recorded at $2.369/MMBtu, up marginally by 1.46%.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 101.9, down slightly by 0.06% against the last closing.

At the time of reporting, the rupee was recorded at INR 83.31, remained largely stable against the previous closing.