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

Base metals prices on the London Metal Exchange (LME) mostly exhibited negative trends. Meanwhile, metal stocks at LME-registered warehouses showed mixed movements, with the largest inflow witnessed in nickel, which increased by 1.62% to 0.121 million tonnes (mnt).

COMEX market update

Copper prices on the COMEX market remained stable, settling at $8,960/tonne (t) compared to the previous close.

India market overview

India's aluminium ADC12 alloy ingot spot prices experienced a slight decline w-o-w in both the northern and southern regions, driven by reduced demand and lower domestic raw material costs.

BigMint's benchmark assessments for the ADC12 (non-OEM) grade stood at INR 208,500/t in Delhi and INR 210,500/t in Chennai, both down by INR 1,500/t.

Aluminium tense scrap prices remained stable, with ex-Delhi-NCR prices at INR 176,500/t and ex-Chennai prices at INR 177,500/t.

Global market updates

China's aluminium surge sparks trade tensions

China's aluminium production reached a record 3.69 mnt in July, driven by surplus capacity. With domestic demand faltering, China has ramped up exports of semi-manufactured aluminium products. This flood has intensified trade disputes, especially with the US, which has imposed multiple tariffs but still saw 210,000 t of Chinese aluminium imports last year.

US factory orders soar in July

US factory orders rose 5.0% in July, surpassing forecasts, driven by a 12.9% increase in defence aircraft orders. This follows a 3.3% decline in June. While overall demand was moderate due to higher borrowing costs, non-defence capital goods orders saw a notable 42.0% rebound. Shipments of core capital goods also exceeded prior estimates.

Euro zone business boosted by Olympics

Euro zone business activity rose to 51.0 in August, up from 50.2 in July, driven by the Olympic Games in France. Despite this temporary lift, underlying demand remains weak, particularly in Germany. The European Central Bank is expected to cut rates in September. Overall, new business and growth expectations are declining, signalling potential challenges ahead.

South America boosts global oil supply

South America is driving global crude oil growth, with Brazil, Guyana, and Argentina leading the way. Brazil's output is rising, Guyana's production is recovering, and Argentina's shale oil is expanding. Venezuela's output remains steady amid political uncertainty.

Oil prices

Brent crude oil futures were recorded at $72.92/barrel, while West Texas Intermediate (WTI) crude oil futures edged up by 0.30% to $69.41/barrel.

Natural gas prices