Base metals prices on LME see downtrend; stocks experience outflows

Base metals prices on the London Metal Exchange (LME) mostly exhibited negative trends, with lead witnessing the largest decline by 1.6%. Meanwhile, metal stocks at LME-registered warehouses showed negative movements.

COMEX market update

Copper prices on the COMEX market slightly decreased by 1% from the previous close, settling at $8,963/tonne (t).

India market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 723,500/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 176,500/t and ex-Chennai prices at INR 177,500/t.

Global market updates

Copper prices drop amid weak demand and high inventories

Copper prices have fallen over 17% from peak levels due to weak demand from China, high inventories, and a strong US dollar. Despite a positive long-term outlook, the immediate future for copper prices remains challenging. The global shift towards clean energy is expected to drive future demand, but current production and price pressures persist.

Japan's revised growth shows economic challenges

Japan's economy grew at an annualised 2.9% in Q2, slightly below earlier forecasts and the initial estimate of 3.1%. Revisions in corporate and household spending signal interest rate hikes and a tougher second half for consumption. The Bank of Japan aims to boost domestic demand while phasing out its long-term monetary stimulus.

China's export growth slows amid trade tensions

China's exports in August likely grew at 6.5%, the slowest pace in four months, impacted by cooling global demand and rising trade barriers. Imports are expected to rise by only 2%, reflecting weak domestic demand. Trade data points to economic challenges and mounting tariff risks.

Typhoon Yagi devastates northern Vietnam

Typhoon Yagi, the strongest storm in Asia this year, has caused severe flooding and landslides in northern Vietnam, resulting in at least 24 deaths and 299 injuries. The storm, which hit on Saturday, disrupted power and communications, particularly in Quang Ninh and Haiphong. Authorities warn of continued flooding and landslides, with heavy rainfall exacerbating risks in several provinces.

Oil prices

Oil futures rose by a dollar in early trading on Monday due to a potential hurricane system approaching the US Gulf Coast and a market rebound from the previous sell-off, triggered by weaker-than-expected US jobs data on Friday.

Brent crude oil futures were recorded at $71.60/barrel, while West Texas Intermediate (WTI) crude oil futures edged up by 0.84% to $68.24/barrel.

Natural gas prices

Natural gas prices were recorded at $2.19/metric million British thermal unit (MMBtu), down by 3.56%.