Base metals prices on LME show mixed trends, stocks witness outflows

• China's copper scrap supply may tighten in 2025
  
  
• US manufacturing output rises 0.6% m-o-m in Dec
  
  

Base metals prices on the London Metal Exchange (LME) showed mixed trends, with aluminium recording the highest gain of 1.82% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed negative movements, with zinc decreasing by 1.25% d-o-d.

COMEX market update

Copper prices on the COMEX market stood at $9,537/tonne (t), down by 3% compared to the previous close.

Indian market overview

In India's non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 754,000/t ex-Delhi. Aluminium Tense scrap prices remained stable d-o-d, with ex-Delhi at INR 175,000/t and ex-Chennai at INR 176,000/t.

Global updates

China's copper scrap supply may tighten in 2025

China's copper scrap market is expected to face tighter supply in 2025 due to potential US-China trade tensions, limited copper concentrate availability, and rising competition. While China's scrap imports increased in 2024, concerns over tariffs and growing interest in copper recycling are likely to weigh on supply in 2025. Efforts to improve domestic scrap collection and offshoring may alleviate some supply challenges, but competition will intensify.

US manufacturing output gains in Dec'24

US manufacturing output rose 0.6% in December, driven by a recovery in Boeing's production after a strike. This follows a 0.4% m-o-m increase in November, surpassing forecasts. Production of aerospace and transportation equipment increased by 6.3% m-o-m, while motor vehicle output fell. Despite the July-September quarter recording a contraction in factory output, the sector has stabilised in recent months, with the Federal Reserve cutting interest rates. However, future tariffs may impact costs.

Japan's machinery orders climb up in Nov'24

Japan's core machinery orders climbed up by 3.4% m-o-m in November, surpassing forecasts and signalling a recovery in capital investment. This increase follows a 6% m-o-m rise in manufacturing orders and strong demand from non-manufacturers, excluding the ship and electricity sectors. The positive trend points to, first, ongoing investment amid labour shortages and, secondly, steady digitalisation ahead of the Bank of Japan's rate review.

Oil prices fall

Brent crude futures were recorded at $80.53/barrel today. Meanwhile, WTI crude oil futures decreased slightly by 0.08% d-o-d to $77.82/barrel.

Natural gas prices drop

Natural gas stood at $3.80/metric million British thermal unit (MMBtu), down by 3.67% d-o-d.

Dollar index inches down

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 108.97, down by 0.21% d-o-d at the time of reporting. The Indian rupee was recorded at INR 86.52 against the dollar.