Base metals prices on LME exhibit negative trends; stocks witness mixed movements

Base metals prices on the London Metal Exchange (LME) largely trended downward, with nickel witnessing the highest drop of 2.80%. Meanwhile, metal stocks at LME-registered warehouses showed mixed movements, with copper declining by 1.61%.

COMEX market update

Copper prices on the COMEX market decreased by 2%, settling at $9,525/tonne (t) compared to the previous close.

Indian market overview

Imported aluminium scrap offers into India decreased by up to 2.6% w-o-w following a marginal drop in aluminium prices on the LME after they hit a four-month high recently. BigMint's benchmark assessments showed that tense from the UAE was priced at $1,760/t, down by 1.1% w-o-w, while zorba 95/5 from the UK was at $2,080/t, both CFR west coast, India.

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 756,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 171,000/t and ex-Chennai at INR 172,000/t.

Global updates

Alcoa enters into long-term alumina supply contract with Aluminium Bahrain

Alcoa Corporation has announced a 10-year contract to supply up to 16.5 million tonnes (mnt) of smelter-grade alumina to Aluminium Bahrain B.S.C. (Alba) from 2026 to 2035. This partnership reinforces Alcoa's status as Alba's largest third-party alumina supplier. In a statement, both companies emphasised their commitment to sustainability and growth, aiming for stable supply in the global aluminium market.

Moderate rate hikes ahead for Japan

A Bank of Japan policymaker, Seiji Adachi, emphasised a "very moderate" approach to interest rate hikes, urging caution amid global uncertainties. He highlighted that a potential yen appreciation could impact inflation and warned that wage growth might stagnate. Adachi stated that Japan's economy is ready for a policy shift but must avoid premature hikes to ensure sustainable inflation before adjusting rates.

Eurozone economy shows signs of growth

Recent indicators suggest that the eurozone economy is showing slight signs of growth, with industrial output rising by 1.8% m-o-m in August and bank lending demand increasing. Germany led the way with a 3% monthly production surge, despite ongoing structural challenges. The ZEW sentiment index also improved, reflecting better investor morale. However, expectations for a robust recovery remain cautious amid high energy costs and external competition.

China's fiscal stimulus faces scepticism

China's expected fiscal package of RMB 6 trillion ($845 billion) has generated mixed reactions in the market, with stocks retreating after an initial surge. Analysts expect the stimulus will stabilise growth, with a target of around 5% for next year. However, concerns remain about local government debt and reliance on external markets, which could complicate China's long-term growth prospects despite immediate support measures.

Oil prices edge up

Russia's crude oil exports by sea hit a three-month high, averaging 3.33 million barrels per day due to reduced domestic refining amid seasonal maintenance, boosting export revenues to $1.52 billion weekly.

Brent crude oil futures were recorded at $74.46/barrel. Meanwhile, West Texas Intermediate (WTI) crude oil futures edged up by 0.35% to $70.83/barrel.

Natural gas prices inch down

Natural gas prices were recorded at $2.48/metric million British thermal unit (MMBtu), down by 0.68%.

Dollar index edges up