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

• Oil prices decrease amid geopolitical tensions
  
  
• China's manufacturing PMI drops to 49.1 in Jan
  
  

Base metals prices on the London Metal Exchange (LME) showed mixed trends, with aluminium recording a drop of 0.69% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed negative movements, with zinc decreasing by 1.41% d-o-d.

COMEX market update

Copper prices on the COMEX market stood at $9,215/tonne (t), down by 4% compared to the previous close.

Indian market overview

In India's non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 761,000/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 manufacturing struggles

China's manufacturing activity contracted in January, with the official PMI dropping to 49.1, signalling an economic slowdown. Despite meeting the 2024 growth target, China saw weak domestic demand this month, and industrial output outpaced retail sales. The government faces pressure to introduce more stimulus measures, though concerns persist about its focus on industrial upgrades, which may exacerbate deflation and weak consumption.

Oil prices fall

Oil prices declined d-o-d amid cautious market sentiment, driven by geopolitical tensions. Amid the fluctuating energy landscape, US policies and calls for price adjustments are creating uncertainty, while OPEC's planned output increase and competing production strategies have contributed to volatility in the sector.

Brent crude futures were recorded at $77.99/barrel today. Meanwhile, WTI crude oil futures decreased slightly by 0.66% d-o-d to $74.17/barrel.

Natural gas prices drop

Natural gas stood at $3.78/metric million British thermal unit (MMBtu), down by 5.96% 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 107.56, up by 0.30% d-o-d at the time of reporting. The Indian rupee was recorded at INR 86.48 against the dollar.