Base metals prices on LME show negative trends

• India's factory activity hits six-month high in Jan
  
  
• China's factory activity slows on trade uncertainty
  
  

Base metals prices on the London Metal Exchange (LME) showed negative trends, with zinc recording a drop of 1.83% d-o-d. Meanwhile, inventories at LME-registered warehouses remained stable d-o-d.

COMEX market update

Copper prices on the COMEX market stood at $9,217/tonne (t), down by 2% compared to the previous close.

Indian market overview

In India's non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 760,000/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

Asia's factory activity slows amid tariff fears

Asia's factory activity weakened in January, with China's growth slowing and US tariff threats impacting sentiment. China's manufacturing grew at a slower pace, and staffing levels fell sharply. Japan also saw a significant drop in activity. The outlook remains uncertain, as tariff fears and soft Chinese demand are expected to hinder regional economic recovery.

China's factory activity slows amid trade uncertainty

China's factory activity growth slowed in January, with the Caixin purchasing managers' index (PMI) dropping m-o-m to 50.1. Domestic demand showed improvement, but export orders fell for the second consecutive month. Factories cut prices the most since 2023 due to competition. Trade uncertainties, heightened by US tariff threats, continue to cloud the outlook, though manufacturers remain hopeful for further government stimulus.

India's factory activity hits six-month high

India's factory activity surged in January, reaching a six-month high, driven by strong domestic and export demand. The HSBC Manufacturing PMI rose m-o-m to 57.7, fuelled by a sharp increase in new orders and output. Firms expanded their workforces at the fastest pace since 2005, boosting optimism for the future despite ongoing inflation pressures and global economic uncertainty.

Oil prices increase

Brent crude futures were recorded at $76.46/barrel today. Meanwhile, WTI crude oil futures increased by 1.92% d-o-d to $73.92/barrel.

Natural gas prices rise

Natural gas stood at $3.28/metric million British thermal unit (MMBtu), up by 7.98% 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 109.30, up by 1.07% d-o-d at the time of reporting. The Indian rupee was recorded at INR 87.08 against the dollar.