Base metals prices on LME show divergent trends; stocks see mixed movements

Base metals prices on the London Metal Exchange (LME) threw up mixed trends, with lead witnessing the highest increase of 2.45%. Meanwhile, stocks at LME-registered warehouses showed mixed movements with zinc gaining 1.54%.

COMEX market update

Copper prices on the COMEX market remained stable settling at $9,603/tonne (t) compared to the previous close.

Indian market overview

In India's non-ferrous metals markets, BigMint assesses domestic copper armature scrap at INR 752,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi prices at INR 172,000/t and ex-Chennai at INR 173,000/t.

Global updates

India's manufacturing growth rebounds in October

India's manufacturing PMI rose to 57.5 in October, reflecting improved demand and a positive business outlook. The boost in orders, including international sales, spurred hiring, marking an eighth straight month of job growth. However, inflationary pressures surged, with rising input costs passed on to consumers. Despite inflation nearing RBI's upper target, a December rate cut remains likely.

Alba and Daiki aluminium commit to sustainable production

At Gateway Gulf 2024, Aluminium Bahrain B.S.C. (Alba) and Daiki Aluminium Industry announced a joint venture, Alba-Daiki Sustainable Solutions (ADSS), to build a sustainable aluminium dross processing facility in Bahrain. With Alba holding a 70% stake, operations are set to begin by September 2026. This partnership emphasises Bahrain's commitment to economic diversification and environmental sustainability, enhancing the region's industrial landscape.

Fed likely to cut rates amid cooling job market

The Federal Reserve is expected to implement a 25-basis-point rate cut next week, followed by another in December, as US job growth slowed significantly in October. Nonfarm payrolls rose by only 12,000, impacted by strikes and hurricanes, while unemployment held steady at 4.1%. Futures indicate a high chance of rates ending 2024 between 4.25%-4.50%.

South Korea's export growth slows amid US election uncertainty

South Korea's exports rose 4.6% y-o-y in October, marking a seven-month low amid global demand concerns and US election uncertainties. Shipments to China hit a 25-month high, but US bound exports weakened. The slower growth aligns with a second consecutive month of factory output decline, prompting potential government stimulus considerations.

Oil prices gain

OPEC+ announced a delay in its planned December output increase, citing weak demand as a concern. This decision follows recent price pressures and market worries over China's economic downturn. As a result, oil prices rose sharply, reflecting renewed market stability amid global economic uncertainties and upcoming US elections.

Oil prices rose sharply, with Brent crude futures were recorded at $74.35/barrel. Meanwhile, WTI crude oil futures edged up by 1.84% d-o-d to $70.77/barrel.

Natural gas prices inch down

Natural gas prices stood at $2.60/metric million British thermal unit (MMBtu), down by 2.37% d-o-d.

Dollar index edges down

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 103.6, down by 0.54% d-o-d. The Indian rupee was recorded at INR 84.11 against the dollar.