Base metals prices on LME show positive trends
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Base metals prices on the London Metal Exchange (LME) mostly exhibited positive trends, with zinc leading the gains with a 1.27% increase. Despite these gains, metal stocks at LME-registered warehouses witnessed mixed trends with lead increasing by 2.32%.
COMEX market update
Copper prices on the COMEX market remained stable, reaching $9,459/t compared to the previous close.
India market overview
In India's non-ferrous markets, BigMint assessed domestic copper armature scrap prices at INR 740,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices remained stable, with ex-Delhi NCR prices at INR 177,000/t and ex-Chennai prices at INR 178,000/t.
Meanwhile, imported aluminium scrap prices in India increased w-o-w amid the rise in LME prices. Prices of all grades inched up by up to 6% this week amidst resumed purchase enquiries. According to BigMint's assessment, tense scrap from the Middle East, particularly the UAE, saw an increase of $60/t, settling at $1,815/t. Zorba 95/5 from the UK was up by $20/t to $2,020/t CFR west coast, India.
Global market updates
Vale appoints new CEO to end market speculation
Vale has its new CEO, aiming to end market speculation and provide stability. Shares of the Brazilian miner rose 3% following the announcement. The leadership change is expected to enhance communication and restore focus on operations, which include major iron ore, nickel, and copper production activities.
BHP focuses on copper growth amid profitable year
BHP reported a 2% rise in annual profit to $13.66 billion. The company aims to boost copper production, targetting over 500,000 t annually in South Australia by the early 2030s. BHP is also investing in copper projects near the Argentine-Chilean border with a $3.25 billion joint venture with Lundin Mining.
China's July industrial profits rise
China's industrial profits rose 4.1% in July y-o-y, up from June's 3.6%, driven by high-tech sectors like lithium-ion batteries and semiconductors, which saw a 12.8% profit increase in the first seven months of 2024. Despite this, weak domestic demand and a challenging external environment continued to weigh on the broader economy.
Fed's Daly advocates rate cut
San Francisco Fed President Mary Daly supports a quarter-point rate cut, citing slowing inflation and a stable labour market. She suggested a policy adjustment is imminent if current conditions persist, echoing Fed Chair Powell's stance on reducing rates.
Oil prices
U.S. crude oil futures fell over 2% to below $76/barrel on Tuesday, after a previous surge due to Libyan production halts. Market expects a gradual disruption rather than a complete shutdown. Brent crude oil futures were recorded at $79.53/barrel, while WTI crude oil futures edged down by 0.01% to $75.52/barrel.
Natural gas
Natural gas prices were recorded at $1.90/MMBtu, up by 0.05%.
Dollar index
The dollar index, which measures value of the greenback against a basket of six major currencies, hovered at 100.87, up by 0.32%. The Indian rupee was recorded at INR 83.95 against the dollar, compared to the previous close.