Base metals prices on LME exhibit positive trends, stocks witness negative movements

Base metals prices on the London Metal Exchange (LME) exhibited mostly positive trends, with aluminium witnessing the highest increase of 2.28%. Meanwhile, metal stocks at LME-registered warehouses showed negative movements.

COMEX market update

Copper prices on the COMEX market increased by 2%, settling at $9,866/tonne (t) compared to the previous close.

Indian market overview

India's imports of semi-finished lead in August 2024 were at 35,798 t, a drop of 6% m-o-m as compared to 38,014 t in July 2024. However, imports were up by 8% y-o-y compared to 33,172 t in August 2023. Lead scrap imports dipped by 5% to 18,522 t in August, down from 19,536 t in July. Y-o-y basis, imports rose dramatically by 128% compared from 8,116 t in the previous year.

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap was at INR 750,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 173,500/t and ex-Chennai at INR 174,500/t.

Global updates

India's industrial output contracts for first time in nearly 2 years

India's industrial output inched down by 0.1% y-o-y in August, marking its first contraction since October 2022. This decline was driven by weak mining activity and a 3.7% drop in electricity generation. Although manufacturing output rose by 1%, the overall performance fell short of economists' expectations for a 1.2% increase. Analysts suggest growth may improve as seasonal factors kick in later this year.

Singapore maintains steady monetary policy amid growth signs

Singapore's central bank has kept its monetary policy unchanged as third-quarter GDP growth rose to 4.1%, up from 2.9% in the previous quarter. While the Monetary Authority of Singapore (MAS) expressed optimism about future growth, analysts anticipate a potential easing in January due to rising external risks and concerns over geopolitical tensions. Core inflation is projected to decline further, supporting expectations for a policy shift.

China's stimulus plan falls short of investor expectations

China's recent announcement on financial stimulus aimed at revitalising its economy has left investors dissatisfied due to vague details and lack of specific funding amounts. Despite some optimism in the stock market following earlier measures, many analysts express concern that the proposed support will be insufficient to achieve the country's growth target of 5%. Investors await concrete figures from upcoming parliamentary sessions.

Oil prices fall amid concerns over China's economic outlook

Concerns over China's declining inflation and vague economic stimulus plans have raised fears about reduced fuel demand. Despite geopolitical tensions, the focus remains on China's weakening consumption indicators, which reflect a sustained deflationary trend and weaker domestic consumption, complicating prospects for economic recovery in the world's largest crude importer.

Brent crude oil futures were recorded at $78.01/barrel. Meanwhile, West Texas Intermediate (WTI) crude oil futures edged down by 1.34% to $74.55/barrel.

Natural gas prices inch down

Natural gas prices were recorded at $2.58/metric million British thermal unit (MMBtu), down by 1.63%.