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

• LME copper prices record modest gains d-o-d

  
  
  

• Japan's auto output falls 7.9% y-o-y in 10MCY'24
  
  

Base metals prices on the London Metal Exchange (LME) showed mixed trends, with zinc recording the highest decline of 1.74% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed outflows, with lead stocks decreasing by 1.79% d-o-d.

Copper prices on the LME saw modest gains d-o-d on Wednesday, with concerns over potential tariffs on Chinese imports capping further increases. Investors remained cautious due to conflicting reports about US tariff plans under President-elect Donald Trump, while demand for copper in China offered some support. A stronger dollar also pressured the market.

COMEX market update

Copper prices on the COMEX market surged by 24% to $11,393/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 748,000/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

Japan's auto output declines in 10MCY'24

Japan's automobile production fell by 7.9% y-o-y in the first ten months of 2024 to 6.82 million units. Sales and exports also dropped by 7.6% and 3.9%, respectively. In October, production stood at 817,000 units, showing a slight 0.2% decrease compared to the previous year, as reported by the Japan Automobile Manufacturers Association (JAMA).

Two buyers make bids for Glencore's stake in Koniambo Nickel

Two potential buyers have submitted bids for Glencore's 49% stake in Koniambo Nickel SAS (KNS) after site visits in October-December. KNS halted operations in March, following Glencore's decision to sell its stake. Despite ongoing losses and unrest in New Caledonia's nickel sector, discussions with interested parties continue, with proposals under review by KNS's shareholders.

China's SPIC to build largest alumina plant in Guinea

China's SPIC is set to construct the largest alumina processing plant in Guinea, starting in March 2025 and completing by 2027. The plant, with a capacity of 1.2 million tonnes (mnt), will surpass the Friguia Refinery and include a 250-megawatt power plant supplying 100 megawatts to Guinea's grid. The military government requires SPIC to begin production by December 2028 to retain its mining concession.

Oil prices rise

Brent crude futures were recorded at $76.21/barrel today. Meanwhile, WTI crude oil futures increased slightly by 0.07% d-o-d to $73.37/barrel.

Natural gas prices edge down

Natural gas stood at $3.63/metric million British thermal unit (MMBtu), down by 0.49% 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 109.03, up by 0.10% d-o-d at the time of reporting. The Indian rupee was recorded at INR 85.90 against the dollar.