Base metals prices on LME show downward trends; stock outflows continue

India market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 738,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices remained stable, with ex-Delhi NCR prices at INR 177,000/t, and ex-Chennai prices at INR 178,000/t.

Spot prices of aluminium ADC12 alloy ingots (non-OEM) in Delhi-NCR and Chennai increased by INR 2,000/t w-o-w, according to latest assessment. In Delhi-NCR, ADC12 spot prices were assessed at INR 210,000/t ex-Delhi.

Global market updates

Future of LME ring trading in question

LME's open-outcry trading, known as the "ring," faces uncertainty as participation has been dwindling. With Societe Generale's exit, only seven firms remain, just above the threshold for suspension.

While some traders still value the ring for its traditional price-setting, high costs and electronic trading trends have cast doubt on its long-term viability.

Argentina's mining export boom

Argentina's mining exports are projected to exceed $10 billion by 2027, up from around $4 billion this year. The surge is driven by a boom in lithium production, with new projects set to increase output to 200,000 t by early 2026, and a revived focus on copper mining. This growth aims to enhance Argentina's global position in these key metals despite ongoing economic challenges.

Peru's copper pipeline: Challenges and revival

Peru's copper pipeline faces challenges amid social resistance and political instability, but recent government moves, such as reviving the Tia Maria project, signal a more favourable mining climate. Copper demand is expected to double by the decade's end, stressing the need for increased supply.

China's industrial profits rise in July

China's industrial profits grew 4.1% in July, driven by high-tech manufacturing despite weak domestic demand. For January-July, profits rose 3.6%. High-tech sectors such as lithium-ion batteries witnessed a growth of 12.8%, but overall domestic consumption remains weak. Beijing plans to pivot stimulus towards boosting consumption amid economic challenges.

Oil prices

Oil prices remained steady after a drop ended a three-day gain streak amid ongoing concerns over Middle East supply disruptions and global fuel demand. Geopolitical risks and lower refinery margins weigh on the market.

Brent crude oil futures were recorded at $78.69/barrel, while West Texas Intermediate (WTI) crude oil futures increased slightly by 0.15% to $74.63/barrel.