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

Base metals prices on the London Metal Exchange (LME) exhibited mostly negative trends, with zinc witnessing the highest outflow of 2.30%. Meanwhile, metal stocks at LME-registered warehouses showed mixed movements, with lead declining by 0.81%.

COMEX market update

Copper prices on the COMEX market decreased by 1%, settling at $9,641/tonne (t) compared to the previous close.

Indian market overview

A prominent automobile manufacturer has announced its ADC12 prices for November 2024 settlements at INR 209,900/t, a reduction of INR 6,000/t from October's price of INR 215,900/t. This marks the lowest price level in eight months, last seen in March 2024. The decline is primarily attributed to sluggish demand in the automobile sector.

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 755,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 175,500/t and ex-Chennai at INR 176,500/t.

Global updates

Germany's economy set to contract again in 2024

Germany's economy is projected to shrink by 0.2% in 2024, marking a second consecutive year of contraction and making it the only G7 nation in this position. The government has revised its growth forecast downward after an expected recovery failed to materialise. Looking ahead, growth is expected in 2025, supported by rising private consumption, lower inflation, and tax relief measures.

US wholesale inventory growth shrinks

US wholesale inventories in August rose by only 0.1%, down from an earlier estimate of 0.2%. This revision is largely attributed to a slowdown in motor vehicle stock increases, which may impact third-quarter growth forecasts. Despite a y-o-y increase of 0.6%, wholesale sales fell by 0.1% m-o-m in August, highlighting ongoing fluctuations in the GDP amid trade and inventory challenges.

Rio Tinto acquires Arcadium for $6.7 billion

Rio Tinto's $6.7 billion purchase of Arcadium Lithium will elevate it to the world's third-largest lithium producer, significantly boosting its production capabilities. With access to lithium mines in Argentina, Australia, Canada, and the US, Rio aims to capitalise on the projected demand growth for electric vehicle batteries, despite the current oversupply in the market. This strategic acquisition positions Rio for long-term success.

Global zinc market faces supply deficit

The global zinc market is set for a significant 164,000 t deficit in 2024, driven by a 1.4% drop in mine production to 12.06 million tonnes (mnt), worsened by the closure of high-cost mines in Europe. Zinc prices fell 1.46% to $276.45 as China's stimulus efforts failed to ease recovery concerns, despite an RMB 200 billion budget plan.

Oil prices edge up

Oil prices rose slightly in Asian trading, recovering from recent losses as focus shifted to ongoing Middle East tensions and anticipated stimulus measures from China. However, a strong dollar and rising US inventories limited gains, keeping traders cautious.

Brent crude oil futures were recorded at $77.02/barrel. Meanwhile, West Texas Intermediate (WTI) crude oil futures edged up by 0.66% to $73.72/barrel.

Natural gas prices inch down

Natural gas prices were recorded at $2.63/metric million British thermal unit (MMBtu), down by 0.73%.

Dollar index edges down

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 102.33, slightly down by 0.03%. The Indian rupee was recorded at INR 83.96 against the dollar.