Base metal prices on LME show negative trends; stocks witness negative movement

Base metal prices on the London Metal Exchange (LME) mostly exhibited negative trends, except for lead, which gained 0.29%. Zinc prices declined by 1.93%. Meanwhile, metal stocks at LME-registered warehouses also showed a downtrend, but nickel increased by 0.27% to 0.119 million tonnes (mnt).

COMEX market update

Copper prices on the COMEX market remained stable, settling at $9,257/tonne (t) compared to the previous close.

India market overview

In July 2024, India witnessed a sharp decline in its copper concentrates imports, which fell by 18% m-o-m. The total volume imported dropped to 60,575 t, compared to 73,557 t in June 2024. This reduction follows changing supply dynamics and disruptions in the global copper market, which have impacted India's ability to secure raw materials for its domestic copper industry.

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 738,000/t ex-Delhi. Meanwhile, 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.

Global market updates

Copper prices decline amid rising inventories and weak demand

Copper prices dropped 0.19% due to higher LME inventories, weak demand from China, and a stronger US dollar. LME stocks rose to a five-year high, and BHP reduced its demand growth forecast for China. The market is experiencing long liquidation.

China's growth worries offset supply

Concerns about sluggish Chinese economic growth are overshadowing supply disruptions from Libya. A weak purchasing managers' index (PMI) and declining export orders contributed to demand worries, while ongoing Middle East supply disruptions, including recent tanker attacks, also influenced market sentiment.

South Korea's inflation slows

South Korea's August consumer price index (CPI) rose 2.0% y-o-y, the slowest increase in nearly 3.5 years, meeting market expectations and the central bank's target. Core CPI slowed to 2.1%, its weakest since November 2021. The data supports potential monetary easing, with a possible rate cut in October.

Houthis attack tankers in Red Sea

Yemen's Houthi rebels attacked two oil tankers in the Red Sea. Although the vessels were hit, they suffered no major damage or casualties. This incident highlights escalating maritime security concerns, with the US military deeming the assaults as "reckless acts of terrorism".

Oil prices

Brent crude oil futures were recorded at $77.30/barrel, while West Texas Intermediate (WTI) crude oil futures increased slightly by 0.60% to $73.99/barrel.