Base metals prices on LME show negative trends; stocks witness mixed movements

Base metals prices on the London Metal Exchange (LME) showed negative trends, with zinc witnessing the highest outflow of 2.24%.. Meanwhile, stocks at LME-registered warehouses showed mixed movements, with nickel increasing by 2.09%.

Base metal prices fell amid market disappointment over the limited scope of China's new fiscal stimulus measures aimed at stimulating economic growth. Concerns over potential US tariffs under President-elect Trump added to the bearish sentiment. Despite this, downstream demand remained stable and exports saw significant growth.

COMEX market update

Copper prices on the COMEX market decreased by 3% to $9,437/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 771,000/t ex-Delhi. Aluminium tense scrap prices remained stable, with ex-Delhi at INR 172,000/t and ex-Chennai at INR 173,000/t.

Global updates

China's inflation slows, stimulus effect still weak

In October, China's consumer price index (CPI) increased by just 0.3% y-o-y, marking the slowest rise in four months, while producer prices dropped by 2.9%. Despite a $1.4 trillion local debt relief package, economic challenges persist, especially in property and household consumption. Analysts anticipate mild core inflation and expect further interest rate cuts to support the economy.

Govt completes Hindustan Zinc stake sale

The Indian government successfully completed the sale of a 5% stake in Hindustan Zinc through an Offer for Sale (OFS). The divestment attracted strong demand from institutional investors. Hindustan Zinc remains a leading player in India's zinc and silver production sector.

European banks brace for tougher competition under Trump 2.0

With Donald Trump's return to the US presidency, European banks face intensified competition as expectations rise for deregulation benefiting American banks. US financial institutions, like JPMorgan and Goldman Sachs, have seen stock gains, while European banks struggle under strict oversight and low interest rates. The European Central Bank notes a significant profitability gap: US banks have higher returns on equity compared to Europe's. European politicians are preparing for potential deregulation impacts, which may lead to calls for easing banking rules in the region.

Oil prices drop

Oil prices dropped for a second day, driven by weak sentiment surrounding China's economic outlook and demand concerns. Despite efforts to boost growth, investor optimism waned after disappointing data from China, contributing to cautious market sentiment ahead of key global forecasts.

Brent crude futures were recorded at $73.60/barrel. Meanwhile, WTI crude oil futures edged down by 0.48% d-o-d to $70.04/barrel.

Natural gas prices inch up

Natural gas prices stood at $2.82/metric million British thermal unit (MMBtu), up by 5.66% d-o-d.

Dollar index edges up

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 105.05, up by 0.17% d-o-d. The Indian rupee was recorded at INR 84.37 against the dollar.