Base metals prices on LME show positive trends; nickel stocks gain over 4%
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Base metals prices on the London Metal Exchange (LME) exhibited mostly positive trends, with copper prices witnessing the highest gain of 4.80%. Meanwhile, metal stocks at LME-registered warehouses showed a downtrend, except for nickel, which witnessed an inflow of 4.56% to reach 0.13 million tonnes (mnt).
Copper prices exceeded $10,000/tonne (t), rising 3.4% to $4.64 per pound, fuelled by China's stimulus measures for the real estate sector. The Politburo's call for rate cuts and a potential $142 billion capital injection into state banks bolstered market sentiment, while mining stocks also saw significant gains.
COMEX market update
Copper prices on the COMEX market increased by 3%, settling at $10,172/t compared to the previous close.
Indian market overview
Aluminium
Aluminium tense scrap prices remained stable d-o-d at INR 175,000/t ex-Delhi. LME futures were at $2,582/t.
Domestic copper armature prices were assessed at INR 760,000/t ($9,089/t) ex-Delhi, an increase of 2.2% w-o-w. Meanwhile, copper futures on the LME recently hit a three-month high, rising to $9,940/t. Similar levels were last seen in July.
India's copper scrap imports experienced a slight 3.7% m-o-m decline, with August's volumes at 32,770 t compared to July's 34,000 t.
In August 2024, semi-finished zinc ingot imports to India touched 15,093 t, marking a 24% m-o-m increase compared to 12,188 t in the previous month. However, imports declined by 30% compared to 21,710 t in the same month last year. South Korea remained the leading supplier of zinc semi-finished ingots to India, accounting for approximately 55-60% of India's total imports in this category.
Global market updates
Global alumina production remains stable m-o-m in Aug'24: IAI
The latest data from the International Aluminium Institute (IAI) indicated that global alumina production in August 2024 was mostly unchanged at 12.512 mnt, compared to 12.511 mnt in July 2024. Output also remained stable y-o-y, with 12.517 mnt produced in August 2023. In China, alumina production was reported at 7.40 mnt in August, remaining largely stable from the previous month's 7.39 mnt.
Japan's factory output declines amid weak demand and typhoon damage
Japan's industrial output is projected to fall 0.9% m-o-m in August due to weak overseas demand and factory shutdowns caused by Typhoon Shanshan. This follows a 3.1% m-o-m increase in July. Analysts cite sluggish automobile exports and weak machine tool demand as contributing factors, amid ongoing concerns over external economic pressures.
South Korea's export growth slows in Sep'24
South Korea's exports are expected to rise 6.5% y-o-y in September, marking the slowest growth in three months, down from 11.2% y-o-y in August. Analysts attributed this slowdown to unfavourable base effects and a weakening global manufacturing cycle. Memory chip exports are declining, exacerbated by sluggish demand from China and potential US economic deceleration.
Chile ramps up lithium production plans
Chile has designated six priority areas for lithium extraction, opening the door for private investment. The government aims to increase lithium production by 70% by 2030, in line with the president's goal of launching three to four new projects. Indigenous consultations will commence in October, with proposals due by 31 December, fostering competition and enhancing output.
Oil prices decline
International oil markets have experienced extreme volatility, hitting a 40-month low, after rebounding 12% and retreating 6% in the past two weeks. The Israel-Hezbollah conflict has raised concerns regarding wider Middle Eastern instability, while China's economic stimulus is expected to boost demand. Despite these fluctuations, OPEC remains optimistic about long-term oil growth, though challenges persist.
Brent crude oil futures were recorded at $71.37/barrel, while West Texas Intermediate (WTI) crude oil futures edged down by 0.21% to $67.53/barrel.
Natural gas prices inch down
Natural gas prices were recorded at $2.72/metric million British thermal unit (MMBtu), down by 1.09%.
Dollar index edges up
The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 100.55, up slightly by 0.31%. The Indian rupee was recorded at INR 83.68 against the dollar.
