Base metal prices on LME show downward trends; stocks witness mixed movements

Base metal prices on the London Metal Exchange (LME) mostly exhibited negative trends. Lead prices declined by 2.40%. Meanwhile, metal stocks at LME-registered warehouses showed mixed movement, with the largest inflow witnessed in copper, which increased by 2.77% to 322,950 t.

COMEX market update

Copper prices on the COMEX market remained stable, settling at $9,233/tonne (t) compared to the previous close.

India market overview

Aluminium

As per BigMint, aluminium tense scrap prices remained stable, with ex-Delhi-NCR prices at INR 177,000/t and ex-Chennai prices at INR 178,000/t.

Copper

Domestic copper armature prices were assessed at INR 736,000/t ($8,770/t) exy-Delhi, reflecting a slight decrease of 0.3% w-o-w. Copper futures on the LME recently hit a 4-month low, falling to $8,750/t. However, prices have since rebounded to $9,240/t, reaching levels seen in July.

Prices of secondary continuous casting rods (CCRs) (99%) were at INR 786,000/t ($9,367/t) ex-Delhi, falling slightly by 0.3% w-o-w. Meanwhile, primary CCRs were observed at INR 830,000/t ($9890/t), up by 1.1% w-o-w. Imported scrap prices have increased by up to 2.6% w-o-w.

Zinc

In India, the semi-finished zinc ingot market witnessed notable growth in July 2024, driven by supply constraints and robust industrial demand. In July 2024, semi-finished zinc ingot imports reached 12,188 t, marking an increase of 9%. Meanwhile, zinc scrap imports have decreased by 10% to 5,796 t in comparison with 6,465 t in June 2024.

Global market updates

Chinese EV registrations fall amid new tariffs

In July, Chinese automakers saw a drop in EV registrations across Europe, with their market share slipping from 10.2% to 9.9%. The new 48% tariffs on Chinese-made EVs, effective from July 5, are not only impacting vehicle sales but also affecting the metals used in EV batteries. This has created uncertainty for suppliers of lithium, cobalt, and nickel, which are critical for battery production. The slump in EV registrations has led to reduced demand for these essential metals, influencing their market dynamics and pricing.

Chile advances lithium project with key companies

Chile's state-run ENAMI has shortlisted Rio Tinto, BYD, Eramet, LG Energy, Posco, and CNGR Advanced Material to develop the Altoandinos lithium project. This move supports Chile's goal to boost lithium production, essential for electric vehicle batteries. ENAMI plans to finalise partnerships by March 2025, aiming to enhance lithium output and solidify Chile's role as a major producer.

Typhoon Shanshan hits southwest Japan

Typhoon Shanshan has ravaged southwest Japan, particularly Kyushu, leading to extensive damage and power outages. Over 200,000 households in seven prefectures are without power, as reported by Kyushu Electric Power Co., though the Sendai Nuclear Power Plant remains unaffected. The storm has resulted in at least three deaths, injured dozens, and forced evacuations for over 5.2 million people, disrupting the operations of major companies and transport services.

Oil giants report mixed profits

China's largest oil firms posted record profits this week, driven by strong upstream performance, but their refining sectors struggled due to weak fuel demand. Crude oil imports fell 2.4% year-to-date, with July imports down 12% from June, highlighting concerns about economic health and future demand.

Brent crude oil futures were recorded at $80.37/barrel, while West Texas Intermediate (WTI) crude oil futures increased slightly by 0.46% to $76.26/barrel.

Natural gas