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

• Govt to address aluminium duty structure in Feb'25 Budget
  
  
• Glencore partners with Cyclic Materials for copper recycling
  
  

Base metals prices on the London Metal Exchange (LME) showed negative trends, except for nickel, which increased by 0.91% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed mixed movements, with zinc stocks decreasing by 0.76% d-o-d.

Aluminium prices declined due to a rise in China's production of the same. Despite some smelters undergoing maintenance, production capacities are being ramped up, which is expected to increase overall output. Additionally, China's strong aluminium exports and economic policy shifts are boosting market confidence.

COMEX market update

Copper prices on the COMEX market remained stable at $9,436/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 744,000/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

Glencore partners with Cyclic Materials for copper recycling

Glencore has signed a multi-year agreement with Canadian recycler Cyclic Materials Inc. to secure 10,000 t of recycled copper. The copper will be processed at Glencore's Horne smelter in Quebec. This partnership aims to meet the rising demand for copper, driven by electric vehicles, renewable energy, and AI data centres. The agreement is set to start by the end of 2025, with financial terms undisclosed.

Govt to address aluminium duty structure in Budget

The Indian government may revise the inverted duty structure for aluminium in the upcoming Budget. Proposals include reducing duties on key raw materials such as petroleum coke and increasing duties on finished aluminium products to support domestic production. These changes aim to reduce manufacturing costs and promote local manufacturing. The Budget will be presented in February.

ECB set to cut rates amid weak growth and inflation target

The European Central Bank (ECB) is expected to cut interest rates and signal further easing in 2025 due to weak economic growth and inflation nearing its target. Despite concerns over political instability and potential trade wars, the ECB aims to support the faltering economy. A small rate cut to 3% is likely, with additional easing contingent on inflation developments.

Oil prices edge up

Oil prices rose, as market optimism grew over China's easing monetary policy, which is expected to boost demand. Expectations for increased consumption, particularly in consumer sectors, fuelled this sentiment. Additionally, speculation around potential US sanctions on Russian oil added further complexity to market dynamics.

Brent crude futures were recorded at $73.75/barrel today. Meanwhile, WTI crude oil futures increased slightly by 0.18% d-o-d to $70.42/barrel.

Natural gas prices rise

Natural gas stood at $3.39/metric million British thermal unit (MMBtu), up by 0.44% d-o-d.

Dollar index stable

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 106.24, stable d-o-d. The Indian rupee was recorded at INR 84.86 against the dollar.