Base metals prices on LME show downtrend, stocks record mixed trends

Base metals prices on the London Metal Exchange (LME) mostly exhibited negative trends, with zinc witnessing the largest decline by 2.17%. Meanwhile, metal stocks at LME-registered warehouses showed mixed movements with zinc witnessing the largest inflow of 2.12%.

COMEX market update

Copper prices on the COMEX market remained stable from the previous close, settling at $9,380/tonne (t).

India market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 735,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 175,000/t and ex-Chennai prices at INR 176,000/t.

Imported aluminium scrap prices in India drifted higher w-o-w amid a rise in LME aluminium prices. Transactional activities remained on the lower side for few grades due to significant bid-offer disparities seen in the market. According to BigMint's benchmark assessments, tense from the UAE was priced at $1,810/t, up 1.1% w-o-w, while zorba 95/5 from the UK was assessed at $2,070/t, both CFR West Coast, India.

Global market updates

Japan's export slowdown signals economic struggles

Japan's export growth slowed to 5.6% in August, missing expectations of 10%. Exports to the U.S. fell by 0.7%, marking the first drop in nearly three years, while machinery orders unexpectedly declined in July. Analysts warn of challenges ahead for Japan's economic recovery, citing weakening global demand, particularly from major partners like the U.S. and China.

Ireland faces construction challenges, central bank warns

Ireland must overcome significant hurdles to build 52,000 homes annually by 2050, according to the central bank. Despite reaching nearly 33,000 units last year, a decline to 32,000 is expected this year. Key challenges include complex planning processes, increased development finance, and greater availability of serviced land, especially in Dublin.

Japan to assess impact of strong yen on economy

Japan's Finance Minister Shunichi Suzuki stated that the government will evaluate the economic effects of the strengthening yen and respond accordingly. While acknowledging both positive and negative impacts such as on exports and import costs he emphasised that rapid currency fluctuations are undesirable. The yen has recently traded below 140 against the US dollar, influenced by speculation of a Federal Reserve interest rate cut.

Oil prices steady as investors await fed decision

Oil market remains steady as investors await a potential US Federal Reserve interest rate cut. Concerns over supply disruptions and escalating tensions in the Middle East contribute to cautious optimism. Analysts predict that lower rates could boost demand, maintaining a generally positive outlook for the market.

Brent crude oil futures were recorded at $73.17/barrel, while West Texas Intermediate (WTI) crude oil futures edged down by 0.76% to $70.65/barrel.

Natural gas prices edge up

Natural gas prices were recorded at $2.32/metric million British thermal unit (MMBtu), up by 0.09%.

Dollar index drops

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 100.55, down slightly by 0.01%.

The Indian rupee was recorded at INR 83.71 against the dollar.