Base metals prices on LME show mixed trends; stocks see outflows

• China cancels export tax rebates on aluminium, copper
  
  
• Vedanta to boost aluminium smelting capacity to 3 mnt/y
  
  

Base metals prices on the London Metal Exchange (LME) showed mixed trends, with aluminium witnessing the highest gain of 5.29% d-o-d. Meanwhile, stocks at LME-registered warehouses witnessed negative movements, except for zinc, which increased by 2.67% d-o-d.

Aluminium prices jumped by 5.29% to $2,649/t on the London Metal Exchange after China announced the cancellation of export tax rebates for aluminium and copper products, effective 1 December. This move will reduce exports and tighten global supply, as more metal is expected to remain in China. Other base metals, such as copper and zinc, also saw gains.

COMEX market update

Copper prices on the COMEX market remained stable at $8,995/tonne (t) compared to the previous close.

Indian market overview

In India's non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 750,000/t ex-Delhi. Aluminium tense scrap prices remained stable d-o-d, with ex-Delhi at INR 172,000/t and ex-Chennai at INR 173,000/t.

Global updates

Vedanta to boost production across key sectors

At the HT Leadership Summit 2024, Vedanta chairman Anil Agarwal revealed plans to significantly ramp up production across multiple sectors, including crude oil, zinc, and aluminium. Key targets include producing 500,000 barrels of oil and gas, doubling Hindustan Zinc's output, and expanding aluminium smelting capacity to 3 million tonnes (mnt) per year. Agarwal's emphasis on these future growth goals comes amid the closure of the Tuticorin copper plant, which caused a setback to the company's operations.

Korea Zinc's tech secures national security status

Korea Zinc's lithium-ion battery technology has been designated as a national core technology by South Korea, which implies the imposition of strict export controls to protect the innovation from foreign acquisitions. This move comes amid takeover tensions with rival Young Poong and private equity firm MBK Partners and highlights the nation's focus on safeguarding strategic technologies critical for economic security and growth.

US import prices rise unexpectedly in October

US import prices increased by 0.3% in October, defying expectations of a 0.1% decline, primarily due to higher fuel prices. This marks a rebound from the previous month's drop. Y-o-y, import prices rose 0.8%. Despite declines in food prices, core import prices, excluding fuel and food, climbed up by 0.4%, highlighting persistent inflationary pressures, which could affect Federal Reserve rate decisions.

Oil prices drop

Brent crude futures were recorded at $71.12/barrel. Meanwhile, WTI crude oil futures edged down by 0.04% d-o-d to $66.99/barrel.

Natural gas prices rise

Natural gas prices stood at $2.91/metric million British thermal unit (MMBtu), up by 3.22% d-o-d.

Dollar index edges up

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 106.63, up by 0.02% d-o-d. The Indian rupee was recorded at INR 84.38 against the dollar.