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

• India eyes critical minerals partnership with US
  
  
• China trims key lending rates to boost economy
  
  

Base metals prices on the London Metal Exchange (LME) largely trended upward, except for nickel, which witnessed a drop of 0.64%. Meanwhile, metal stocks at LME-registered warehouses showed mixed movements, with zinc declining by 1.15%.

COMEX market update

Copper prices on the COMEX market increased by 1%, settling at $9,629/tonne (t) compared to the previous close.

Indian market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 764,000/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

India pursues critical mineral agreement with US

India's commerce minister, Piyush Goyal, announced the country's intention to establish a critical minerals partnership agreement (CMPA) with the US, aiming to lay the groundwork for a broader trade agreement. This follows a recent memorandum of understanding (MOU) focused on enhancing supply chains for essential minerals such as lithium and cobalt, crucial for electric vehicles. Additionally, Goyal expressed hopes for a future free trade agreement (FTA).

China announces further measures as part of economic stimulus

China has reduced its benchmark lending rates as part of a stimulus strategy to revive economic growth. The one-year loan prime rate (LPR) dropped by 25 basis points to 3.10%, while the five-year LPR fell to 3.6%. These cuts follow prior reductions and aim to bolster consumer spending and the struggling property sector, amid mixed economic signals.

Leaders to confront economic challenges at World Bank, IMF meetings

Global finance leaders have convened in Washington for the International Monetary Fund (IMF) and World Bank meetings amid global uncertainty, including geopolitical conflicts and a slowing Chinese economy. Key discussions will centre on the potential impact of the US election on trade policies and climate cooperation. The IMF is also set to update its global growth forecasts amid concerns over debt distress and the need for sustainable investments amid uneven economic recovery.

Oil prices rise amid Middle East tensions

Investors are closely monitoring developments in the Middle East and awaiting US inventory data, which could affect future demand forecasts. Concerns over potential supply disruptions and China's economic stimulus plans are shaping market sentiment. Natural gas prices have also seen a slight increase.

Brent crude oil futures were recorded at $73.29/barrel. Meanwhile, West Texas Intermediate (WTI) crude oil futures edged up by 0.43% to $69.52/barrel.

Natural gas prices inch down

Natural gas prices were recorded at $2.24/metric million British thermal unit (MMBtu), down by 0.53%.

Dollar index holds steady

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 103.39, stable d-o-d. The Indian rupee was recorded at INR 84.07 against the dollar.