Base metals prices on LME exhibit negative trends; stocks witness outflows

Base metals prices on the London Metal Exchange (LME) largely trended downward, with zinc witnessing the highest drop of 2.28%. Meanwhile, metal stocks at LME-registered warehouses showed negative movements, with copper declining by 1.58%.

COMEX market update

Copper prices on the COMEX market decreased by 2%, settling at $9,683/tonne (t) compared to the previous close.

Indian market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 765,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 172,500/t and ex-Chennai at INR 173,500/t.

Global updates

Malaysia's 2025 budget to announce subsidy cuts, new taxes

Malaysia plans to introduce more subsidy cuts and new taxes in its 2025 budget to improve fiscal health amid declining revenue. Experts suggest taxes on luxury goods and sugary beverages may be implemented, but a broad GST revival is unlikely. The fiscal deficit is expected to narrow to 3.5%-3.9% of GDP, with a focus on targeted subsidies for low-income households.

China's September export decline signals economic struggles

China's exports grew by just 2.4% in September, marking a sharp drop from August's 8.7% and missing analysts' expectations. While exports to Russia surged, overall demand weakened, particularly from key markets such as Japan and South Korea. Imports barely increased by 0.3%, highlighting domestic challenges amid ongoing trade tensions and a sluggish property sector. Policymakers are now focused on stimulating growth.

China's unwrought copper imports increased by 15.4% in September to 479,000 t, driven by seasonal demand and a positive consumption outlook. The rise reflects restocking ahead of the Golden Week holiday and favourable global copper prices. Despite this monthly increase, imports remain close to last year's figures, with the total volume for 2024 up 2.6%.

MBK, Young Poong acquire 5% stake in Korea Zinc

MBK Partners, a private equity firm, and Young Poong Corp., a South Korean conglomerate, have secured over 5% of Korea Zinc, the world's largest lead and zinc smelter, through a recent tender offer, receiving acceptances for 1.1 million shares. This move positions them as the largest shareholders, amid a battle for control against the co-founding Chang family. Korea Zinc is also conducting its own tender offer to fend off what it calls a "hostile" takeover.

Oil prices dip amid weak demand outlook

The oil market slid 3% due to a weakened demand outlook and reports that Israel may avoid striking Iranian oil targets. This eased supply disruption fears. Additionally, OPEC lowered its global demand growth projections for 2024, reflecting concerns over soft consumption and high US production levels.

Brent crude oil futures were recorded at $74.57/barrel. Meanwhile, West Texas Intermediate (WTI) crude oil futures edged down by 3.78% to $71.04/barrel.

Natural gas prices inch down

Natural gas prices were recorded at $2.46/metric million British thermal unit (MMBtu), down by 1.32%.

Dollar index edges down