Base metals prices on LME exhibit positive trends; stocks witness mixed movements
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Base metals prices on the London Metal Exchange (LME) largely trended upward, with aluminium witnessing the highest gain of 2.46%. Meanwhile, metal stocks at LME-registered warehouses showed mixed movements, with aluminium declining by 0.33%.
COMEX market update
Copper prices on the COMEX market increased by 1%, settling at $9,584/tonne (t) compared to the previous close.
Indian market overview
India's spot prices of aluminium ADC12 alloyed ingots inched down w-o-w in both the northern and southern regions of the country, pressured by weak demand and declining domestic raw material costs.
According to BigMint's benchmark assessments, the ADC12 (non-OEM) grade stood at INR 203,000/t in Delhi and INR 205,000/t in Chennai, down INR 3,000/t w-o-w.
In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 762,000/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
US import prices fall due to cheaper energy
US import prices decreased by 0.4% m-o-m in September, the largest drop in nine months, largely driven by falling energy costs, including a 7% m-o-m decline in fuel prices. Compared to September 2023, import prices dipped 0.1%, marking the first y-o-y decline since February. Meanwhile, export prices fell 0.7%, suggesting muted inflationary pressures, which may support further interest rate cuts by the Federal Reserve.
BHP's copper production rises 4%
BHP reported a 4% increase in copper output for the quarter, driven by improved grades and throughput at its Escondida mine in Chile. This growth comes as the company focuses on expanding its copper operations amid rising demand. The miner continues to diversify its portfolio, with ongoing investments in various projects to enhance production capabilities in the non-ferrous sector.
Freeport delays Indonesian copper sales to 2025
US copper miner Freeport McMoRan has postponed its refined copper sales from Indonesia to Q2 2025 due to a fire at its Manyar smelter. The incident has compounded previous delays, narrowing the expected 2025 copper surplus and potentially supporting prices. The company is assessing damages and negotiating an extension for its export licence, amid Indonesia's push for local smelting to boost revenue.
Vale reports surge in copper and nickel production
Vale achieved its highest quarterly iron ore output in nearly six years, which rose 5.5% q-o-q to 91 million tonnes (mnt) in Q3. Additionally, copper production increased by 5% q-o-q to 85,900 t, while nickel output surged 12% q-o-q to 47,100 t, driven by strong performance at its Sudbury and Voisey's Bay projects. These results exceed expectations and will bolster Vale's 2024 production guidance.
Oil prices edge up
Oil prices have edged higher from two-week lows as investors monitor developments in the Middle East and await US inventory data. Concerns about potential supply disruptions and China's economic stimulus plans are influencing market sentiment, creating anticipation for upcoming reports that could impact future demand forecasts.
Brent crude oil futures were recorded at $74.42/barrel. Meanwhile, West Texas Intermediate (WTI) crude oil futures edged up by 0.33% to $70.62/barrel.
Natural gas prices inch up
Natural gas prices were recorded at $2.37/metric million British thermal unit (MMBtu), up by 0.13%.
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 84.00 against the dollar.