The London Metal Exchange (LME) witnessed significant price surges across base metals following optimistic macroeconomic reports from China, with all metals marking gains by Wednesday, 3 March.
Three-month aluminium futures showed a modest uptick of 2 per cent to reach $2,429 per tonne (t), while nickel exhibited a 1.8 per cent rise to $17,339 per tonne. Copper prices settled at $9,262 per tonne, and zinc experienced a notable increase of 2.7 per cent to $2,548 per tonne. Lead prices also climbed by 3 per cent to $2,082 per tonne. Meanwhile, stocks at LME-registered warehouses displayed a mix of trends during this period.
Prices of non-ferrous metals
In Delhi, spot prices for ADC12 alloy ingots surged by INR 2,000 per tonne (t) to reach INR 213,000 per tonne. Tensions in offers were noted in both Delhi and Chennai markets, with trade levels observed to be lower in Chennai. Aluminium casting scrap is currently being exported to Korea. Due to price differentials, the production of ADC12 alloy operates at 60-70 percent capacity. Meanwhile, silicon prices have witnessed notable declines.
Robust economic indicators and apprehensions surrounding ongoing inflation are causing investors to reassess the scope for potential interest rate reductions by the Federal Reserve, resulting in a decline in the U.S. government bond market. The yield on the 10-year treasury has reached 4.429 per cent, marking its highest point in more than four months.
In Q4 FY24, Hindustan Zinc achieved its highest-ever quarterly refined metal production, totalling 273,000 tonnes, marking a sequential increase of 6 per cent. Refined zinc production reached 220,000 tonnes, showing a quarterly increase of 9 per cent, while refined lead production stood at 53,000 tonnes, down 2 per cent year-on-year. Additionally, the company reached notable annual production milestones, including 1.07 million tonnes of mined metal and 1.03 million tonnes of refined metal.
Other prices
In Asian trading on Thursday, copper prices soared to a 14-month peak, propelled by increasing optimism surrounding China's economy and major refiners' potential for production reductions. The sentiment was bolstered by encouraging Chinese PMI data. In contrast, news of output reductions from Chinese smelters due to tight copper concentrate supply provided additional support, leading to a tightening of global copper supplies amid improving demand.
The expansion of the U.S. services industry moderated in March, as reflected by the Institute for Supply Management's PMI dropping to 51.4, indicating a moderate pace of growth. Prices paid for inputs reached a four-year low, indicating a favourable inflation outlook. Although new orders declined, production remained robust. There was a slight improvement in employment levels, underscoring the persistent challenges in the labour market.
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