Base metals prices on LME show negative trends, stocks witness outflows

• Japan, US factory activity shrinks in Dec
  
  
• Singapore's Nov exports grow 3.4% y-o-y
  
  

Base metals prices on the London Metal Exchange (LME) showed negative trends, except for copper, which increased by 0.11% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed outflows, with zinc stocks decreasing by 2.61% d-o-d.

COMEX market update

Copper prices on the COMEX market remained stable at $9,180/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 740,000/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

Singapore's Nov exports grow 3.4% y-o-y

Singapore's non-oil exports rose 3.4% y-o-y in November, driven by a boost in electronics shipments. This performance surpassed expectations, reversing October's 4.7% decline. On a m-o-m basis, exports jumped 14.7%. Shipments to Taiwan, Hong Kong, and Malaysia increased, while exports to the US, China, and Japan fell.

Japan's factory activity contracts for 6th straight month

Japan's manufacturing activity shrank for the sixth consecutive month in December, with the purchasing managers' index (PMI) falling to 49.5. The sector faced weak demand, rising costs, and reduced orders. In contrast, the services sector grew, with its PMI rising to 51.4. Despite optimism in services, business confidence in manufacturing remained low due to ongoing cost pressures and global demand concerns.

US manufacturing declines in Dec, outlook positive for 2025

US manufacturing activity contracted further in December, with the flash PMI dropping to 48.3, signalling ongoing challenges. Factory output fell to its lowest since mid-2020, and manufacturers face rising input costs, exacerbated by concerns over potential tariffs on imports. Despite this, manufacturers are optimistic about 2025, predicting revenue growth of 4.2% and a slight increase in factory employment, signalling a recovery after a prolonged slump.

Oil prices edge up

Brent crude futures were recorded at $74.09/barrel today. Meanwhile, WTI crude oil futures increased slightly by 0.20% d-o-d to $70.85/barrel.

Natural gas prices rise

Natural gas stood at $3.22/metric million British thermal unit (MMBtu), up by 0.44% d-o-d.

Dollar index up

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 106, up slightly by 0.11% d-o-d. The Indian rupee was recorded at INR 84.92 against the dollar.