Base metals prices on LME continue uptrend; stocks witness mixed movements
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Base metals prices on the London Metal Exchange (LME) mostly exhibited positive trends, with lead witnessing the steepest gain of 1.82%. Meanwhile, metal stocks at LME-registered warehouses showed mixed movements, with zinc recording the largest inflow of 1.97%.
COMEX market update
Copper prices on the COMEX market increased by 2% from the previous close, settling at $9,532/tonne (t).
India market overview
In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 744,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 175,000/t and ex-Chennai prices at INR 176,000/t.
Prices of copper have been steadily rising in recent weeks, recovering from a four-month low reached in early August. Three-month LME copper prices have experienced a 4% rise w-o-w and are currently at around $9,560/t.
Global market updates
China holds steady on lending rates amid market expectations
China's central bank surprised markets by keeping benchmark lending rates unchanged, despite recent weak economic data. Analysts expect cuts soon, as the US Federal Reserve's easing provides room for monetary loosening. With growth targets becoming increasingly challenging, policymakers may implement broader stimulus measures, including significant rate reductions in the fourth quarter, to support the faltering economy.
USTR seeks public input on new tariffs for Chinese goods
The office of the US Trade Representative (USTR) will accept public comments, starting Monday, on proposed tariff increases for Chinese polysilicon, silicon wafers, and tungsten products. These tariffs, part of a broader initiative under "Section 301", include a 50% duty on polysilicon and silicon wafers, along with 25% on processed tungsten items. The comment period will be open till 22 October.
BOJ holds interest rates steady amid cautious policy normalisation
The Bank of Japan (BOJ) maintained its benchmark interest rate at 0.25%, the highest since 2008, as it navigates the shift from an ultra-easy monetary policy. Despite a moderate economic recovery and rising core inflation, economists anticipate another rate hike by year-end. The decision contrasts with global trends, particularly following the US Federal Reserve's recent rate cuts. The BOJ aims to support growth while managing inflation targets.
US government advances approval for Ioneer's lithium mine
The publication of the environmental report for Ioneer's Rhyolite Ridge lithium mine in Nevada marks a significant step towards its approval. This mine could become one of the largest US lithium sources, essential for electric vehicle batteries. However, it faces opposition, as it is the only documented habitat of the endangered Tiehm's buckwheat flower.
Oil prices decline
Oil refiners in Asia, Europe, and the US are facing a significant profit decline as new facilities come online and global demand weakens. Slowing economic growth, especially in China, and increased adoption of electric vehicles have contributed to this downturn.
Brent crude oil futures were recorded at $74.64/barrel, while West Texas Intermediate (WTI) crude oil futures edged down by 0.21% to $71.80/barrel.
Natural gas prices rise
Natural gas prices were recorded at $2.35/metric million British thermal unit (MMBtu), up by 0.13%.
Dollar index drops
The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 100.31, down slightly by 0.03%.
The Indian rupee was recorded at INR 83.56 against the dollar.