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

Base metal prices on the London Metal Exchange (LME) mostly exhibited negative trends, except for copper, which witnessed a gain of 1.47%. Meanwhile, metal stocks at LME-registered warehouses showed negative movements, barring nickel, which witnessed an inflow of 0.44% to 0.121 million tonnes (mnt).

COMEX market update

Copper prices on the COMEX market slightly increased by 2%, settling at $9,096/tonne (t) compared to the previous close.

India market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 714,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices remained stable, with ex-Delhi-NCR prices at INR 176,500/t and ex-Chennai prices at INR 177,500/t.

India's imports of copper pipes and tubes stood at 8,859 t in Jul'24, an increase of 11% m-o-m from 7,976 t in Jun'24. For the Jan-Jul'24 period, imports declined by 29% y-o-y to 63,482 t from 89,592 t in the same period last year. Vietnam emerged as the leading exporter, with 5,224 t, followed by China and Malaysia with 1,361 t and 791 t, respectively.

Global market updates

Harmony targets copper production by 2028

Harmony Gold aims to start copper production from its Eva Copper project in Queensland by 2028. The new mine, anticipated to produce up to 60,000 t of copper annually, marks a significant shift from the company's primary focus of gold. Despite a record profit and a $700 million funding reserve, Harmony's share price fell 10% due to forecasts of lower gold output and higher costs.

China's battery dominance faces Western backlash

China's dominance in electric vehicle (EV) batteries is being challenged by Western trade restrictions. The US plans to raise tariffs on Chinese batteries and their components, while the EU is imposing stringent sourcing guidelines and potential carbon border taxes. Despite these measures, China is expected to remain a key global player, with significant production growth and market share in the battery sector.

BYD encounters challenges in Japanese market

BYD, China's largest EV maker, is facing challenges with expanding in Japan due to sluggish EV demand and reduced subsidies. Despite offering discounts and ramping up marketing, skepticism over Chinese products and high costs have hindered BYD's efforts. The company aims to install 100 quick chargers in Japan by the end of 2025.

Oil prices slide despite OPEC+

Crude oil prices dropped to year-to-date lows amid weak global demand and a potential Libyan oil influx. OPEC+ delayed easing production cuts, but market sentiment remains bearish. Trend-following strategies and concerns over prolonged demand weakness have contributed to the persistent price decline.

Brent crude oil futures were recorded at $72.78/barrel, while West Texas Intermediate (WTI) crude oil futures edged up by 0.12% to $69.23/barrel.

Natural gas prices

Natural gas prices were recorded at $2.25/metric million British thermal unit (MMBtu), up by 0.09%.