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 1.59%. Meanwhile, metal stocks at LME-registered warehouses showed mixed movements, with nickel increasing by 0.78%.

COMEX market update

Copper prices on the COMEX market decreased by 1%, settling at $9,499/tonne (t) compared to the previous close.

Indian market overview

In September 2024, automobile retail sales in India fell by 9% y-o-y, with total registrations declining to 1,723,330 units from 1,899,192 units in September 2023, according to the Federation of Automobile Dealers Associations (FADA).

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 758,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi prices at INR 171,000/t and ex-Chennai at INR 172,000/t.

Global updates

Peru's copper output rebounds by 11% in August

Peru's copper production surged 10.7% y-o-y in August to 246,568 t. This rebound follows five months of decline, driven primarily by Glencore's Antamina mine, which saw a 26.5% y-o-y increase in the production of the red metal. Despite this improvement, year-to-date production remains 0.7% lower than in 2023, indicating ongoing challenges in the industry.

Industrial metals prices decline amid China demand concerns

Prices of industrial metals, including copper and iron ore, dropped as investor confidence waned over China's efforts to stimulate its property market. Despite a substantial $562 billion plan to complete housing projects, analysts predicted that China will not be able to significantly boost short-term steel demand. Iron ore futures fell over 5%, reflecting ongoing economic pressures and robust supply from major miners, leading to broader declines in non-ferrous metals such as tin, nickel, and zinc.

Indonesia's nickel industry faces transition as key figure steps down

Luhut Binsar Panjaitan, a pivotal force in Indonesia's nickel sector, is stepping down as the country prepares for a new president. Given that his ban on nickel ore exports substantially boosted domestic investment, Panjaitan's departure has raised concerns about continuity in policies aimed at promoting "downstreaming" turning raw materials into finished products. Industry sources believe that the incoming administration needs to find a suitable successor to maintain momentum in this crucial industry.

Chile's central bank cuts rate amid easing cycle

Chile's central bank reduced its benchmark interest rate by 25 basis points to 5.25%, continuing an easing cycle initiated last year. The unanimous decision reflects cooling inflation and aims to stimulate growth in the copper-producing economy, despite challenges in output. Analysts expect further cuts, potentially targeting 4.0% by mid-2025, contingent on stable economic conditions. Inflation eased to 4.1% in September, supporting the bank's flexible policy commitment.

Oil prices edge up

Crude oil futures rose slightly on Friday, buoyed by a surprise drop in US oil inventories and ongoing Middle East tensions. However, both Brent and West Texas Intermediate (WTI) are set for their largest weekly loss in over a month due to concerns over weaker global demand and rising production levels.

Brent crude oil futures were recorded at $74.87/barrel. Meanwhile, WTI crude oil futures edged up by 0.67% to $71.14/barrel.

Natural gas prices inch up

Natural gas prices were recorded at $2.35/metric million British thermal unit (MMBtu), up by 0.21%.

Dollar index holds steady

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 103.40, down by 0.49% d-o-d. The Indian rupee was recorded at INR 84.06 against the dollar.