Base metals prices on LME show mixed trends; stocks witness drawdown

Base metals prices on the London Metal Exchange (LME) showed mixed trends, with nickel recording the highest gain of 1.42% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed outflows, with zinc stocks decreasing by 2.02% d-o-d.

COMEX market update

Copper prices on the COMEX market remained stable at $9,176/tonne (t), compared to the previous close.

Indian market overview

In India's non-ferrous metals markets,BigMintassessed domestic copper armature scrap at INR 746,000/t ex-Delhi. Aluminium Tense scrap prices remained stable d-o-d, with ex-Delhi at INR 174,000/t and ex-Chennai at INR 175,000/t.

Global updates

US trade deficit with Vietnam surpasses $110 bn

US' trade deficit with Vietnam exceeded $110 billion in the first 11 months of 2024, a nearly 18% rise compared to the previous year. Vietnam's weak dong, falling to its lowest levels against the dollar, boosted exports. The country now has the fourth-largest trade surplus with the US, raising concerns over potential currency manipulation.

Codelco reports modest production increase in 2024

Codelco, Chile's state-owned copper producer, expects a slight production increase in 2024, with output rising by 3,000 to 4,000 t. This marks a potential turnaround for the company, which has faced declines at its century-old operations. The improvement brings cautious optimism, as Codelco aims to stabilise and enhance production moving forward.

China's non-ferrous market shows mixed trends

China's non-ferrous metals market showed mixed performance. Aluminum prices in Shanghai fluctuated significantly, influenced by macro factors like the Federal Reserve's policy changes, global economic uncertainty, and trade tensions. While supply and demand for aluminum may improve in Q1 2025, a significant surplus is expected post-Q2, putting pressure on the market.

Oil prices rise amid tightening supply

Oil prices went up due to a combination of tightening supply and increased demand from colder weather in key regions. A drop in US stockpiles and concerns over sanctions on Iranian barrels supported the upward movement. However, analysts caution that the market may be overbought, with potential for a pullback amid global economic risks.

Brent crude futures were recorded at $77.53/barrel today. Meanwhile, WTI crude oil futures increased slightly by 0.74% d-o-d to $74.80/barrel.

Natural gas prices edge up

Natural gas stood at $3.52/metric million British thermal unit (MMBtu), up by 2.06% d-o-d.

Dollar index inches up

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 108.42, up by 0.03% d-o-d at the time of reporting. The Indian rupee was recorded at INR 85.83 against the dollar.