Base metals prices on LME remain positive, stocks witness negative trends

Base metals prices on the London Metal Exchange (LME) exhibited positive trends, with copper leading the gains, increasing by 1.80%. However, metal stocks at LME-registered warehouses showed a decline.

Aluminium prices surge

Aluminium prices rose, driven by positive economic indicators and supply concerns. China's July 2024 production increased by 3.22% y-o-y to 3.683 million tonnes, reflecting higher global output. Additionally, U.S. jobs data helped ease fears of an economic slowdown, further supporting market sentiment.

COMEX market update

Copper prices on the COMEX market rose by 2%, reaching $8,932/t compared to the previous close.

India market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 730,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices remained stable, with ex-Delhi NCR prices at INR 174,000/t and ex-Chennai prices at INR 175,000/t.

Global market updates

India's June industrial output misses forecast

India's industrial output grew by 4.2% y-o-y in June, falling short of the 5.5% forecast. Manufacturing rose by 2.6%, while electricity and mining saw increases of 8.6% and 10.3%, respectively. May's growth was revised to 6.2%, indicating a weaker-than-expected performance in June.

Russian aluminium share increases as Indian stocks decline

In July, the share of Russian aluminium in LME-approved warehouses rose to 65%, while Indian aluminium's share dropped to 33%. Overall, LME aluminium stocks fell by 23%, with the majority of the outflow being Indian metal. While Russian stocks increased slightly, Indian stocks saw a significant decline following the LME's ban on Russian metals from 13 April.

Jiangxi Copper subsidiary halts production after fatal accident

Jiangxi Copper's Shandong Humon Smelting subsidiary halted production following a fatal accident at its copper furnace. The suspension, pending an ongoing investigation, affects Humon's copper output of 203,023 tonnes from the previous year. This disruption could impact Jiangxi Copper's overall supply and market share.

Oil prices decline after 5-day rally

Oil prices fell on Tuesday, breaking a five-day rise, after OPEC reduced its 2024 demand growth forecast due to lowered expectations for China. Brent crude dropped by 0.95% to $81.52 per barrel, and WTI slipped by 0.91% to $79.33, reflecting market concerns over demand. Brent oil futures were recorded at $81.65 per barrel, down by 0.79%, while WTI crude oil futures fell by 0.65% to $79.54 per barrel at the time of reporting.

Natural gas prices edge lower

Natural gas prices were recorded at $2.169 per MMBtu, down by 0.91%.

Dollar index remains steady

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 102.9, down by 0.01%. The Indian rupee was recorded at INR 83.96 against the dollar, compared to the previous close.