Base metals prices on LME remain positive, stocks witness mixed trends
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Base metals prices on the London Metal Exchange (LME) showed positive trends. Notably, lead witnessed the largest increase of 3.72%. Meanwhile, metal stocks at LME-registered warehouse showed a mixed movement.
COMEX market
Copper prices on COMEX rose by 1% to $8,778/t against the previous closing.
India market overview
As of last week, base metals prices declined w-o-w, they rebounded by the end of the week in local markets, supported by a recovery in futures prices. Market participants gained confidence, but trade activities remained subdued, likely due to the upcoming holidays next week. Despite lower trade volumes, local prices responded positively to the upward movement in the futures market.
Global updates
Zambia's border closure impacts copper
Zambia has temporarily closed its border with the Democratic Republic of Congo due to unrest following Congo's import ban on Zambian beverages. This closure could delay copper exports from Zambia, Africa's largest copper producer, as most Congolese copper transits through Zambia to regional ports.
Hindustan Zinc plans INR 6,000 crore dividend
Hindustan Zinc is expected to declare a special dividend of INR 6,000 crore this month. This follows last month's National Company Law Tribunal (NCLT) approval to transfer INR 10,383 crore from general reserves to retained earnings. The board is set to meet in the next two weeks to finalise the dividend decision.
Vietnam to subsidise EV charging costs
Vietnam is planning to subsidise electricity prices for EV charging stations to boost electric vehicle adoption and support its energy transition goals. The proposal will be submitted for government approval by mid-September. Vietnam is aiming for carbon neutrality by 2050, aligning with global climate commitments.
Novelis Q1 sales up 2%, IPO planned
In Q1, Novelis reported a 2% increase in net sales to $4.2 billion, driven by higher aluminium prices and an 8% rise in flat-rolled product shipments to 951,000 t. Adjusted EBITDA grew 19% y-o-y to $500 million, and net cash flow improved to $74 million. Despite this, net income fell by 3% to $151 million due to flooding at its Swiss plant and higher restructuring costs. Excluding special items, net income rose 32% to $204 million. Novelis is set to raise $945 million in a US IPO, with Hindalco reducing its stake by 7.5% but retaining 92.5%. Novelis is also planning a $90 million investment in expanding recycling capacity at its Latchford plant.
Oil prices up
Oil prices increased for the fifth straight session on Monday, maintaining last week's 3% gains, driven by easing U.S. recession fears and ongoing Middle East geopolitical tensions.
Brent oil futures remained range-bound to $79.29 per barrel. Meanwhile, crude oil WTI futures were up by 0.4% to $77.21 per barrel at the time of reporting.
Natural gas prices up
Prices of natural gas were recorded at $2.220/MMBtu, up by 3.59%.
Dollar index
The dollar index, which gauges value of the greenback against a basket of six different currencies, hovered at 103.09, which was up by 0.05%.
The rupee was recorded at INR 83.96 against the dollar, slightly depreciated compared to the previous closing.
