Base metals prices on LME rise; stocks record mixed trends

Base metals prices on the London Metal Exchange (LME) mostly showed positive trends, with aluminium recording the largest gain of 2.31%. Meanwhile, metal stocks in LME-registered warehouses witnessed mixed trends, with zinc registering the largest inflow of 2.12%.

COMEX market update

Copper prices on the COMEX market increased by 1% from the previous close, settling at $9,393/tonne (t).

India market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 773,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 175,000/t and ex-Chennai prices at INR 176,00/t.

Global market updates

Rupee expected to stay steady pre-Fed decision

The Indian rupee opened flat at 83.87 against the dollar on Tuesday. Traders expect limited movement due to the upcoming US Federal Reserve policy decision. Persistent dollar demand and the Reserve Bank of India's absorption of inflows are keeping the rupee range-bound. The Fed's potential rate cut remains a key factor for currency movements.

Indonesia's trade surplus exceeds expectations

Indonesia reported a $2.89 billion trade surplus for August, surpassing forecasts of $1.96 billion. Exports rose 7.13% y-o-y to $23.56 billion, while imports increased 9.46% y-o-y to $20.67 billion. Despite falling oil and gas shipments, gains in manufactured goods and coal exports bolstered the surplus. These surges will influence the central bank's policy meeting.

First Quantum offers voluntary retirement amid Cobre Panama shutdown

Canadian miner First Quantum Minerals has introduced a voluntary retirement scheme for Cobre Panama workers as the company awaits a decision from Panama's government on restarting operations. The mine, crucial for global copper supply, was closed in November 2023 after legal and environmental issues. A reduction in the workforce could delay the resumption of production and affect the export of 130,000 t of copper concentrate.

Yen movement in focus this week

The yen's movement is under scrutiny as Tokyo traders return after a holiday. The yen/dollar pair could see significant action this week with the Fed's easing cycle and the Bank of Japan's potential rate hikes. A 50-basis-point Fed cut is now seen as a 67% chance. The yen, recently recovering from a 38-year low, may test 140 per dollar and impact corporate exchange rate assumptions. Market focus will be on the Fed's decision and its implications for future rates.

Oil prices rise

The liquefied natural gas (LNG) sector faces uncertainty due to regulatory delays, cooling Asian demand, and supply chain disruptions. Meanwhile, US projects, such as Rio Grande LNG, face setbacks from legal and regulatory issues. Asian demand may wane with storage nearing capacity, while rising US gas prices could deter price-sensitive buyers. Emission regulations add further complexity to the current market scenario.

Brent crude oil futures were recorded at $73.11/barrel, while West Texas Intermediate (WTI) crude oil futures edged up by 0.71% to $70.59/barrel.

Natural gas prices edge up

Natural gas prices were recorded at $2.39/metric million British thermal unit (MMBtu), up by 0.72%.

Dollar index drops

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 100.73, down slightly by 0.04%.

The Indian rupee was recorded at INR 83.82 against the dollar.