Base metals prices on LME show positive trends; stocks see inflows

• LME lead stocks surge by 49%, touch 11-year high
  
  
• Japan's exports grow in Oct, but trade risks loom
  
  

Base metals prices on the London Metal Exchange (LME) showed positive trends, with aluminium recording the highest gain of 1.42% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed positive movements, with lead surging by 17.69% d-o-d.

Lead stocks at LME warehouses surged 49% in two days to 276,250 tonnes (t), levels not seen since 2013, driven by contract expiries and large short positions. Notably, the majority of lead stocks have been deposited at Singapore's newly registered warehouse, suggesting strategic positioning. Meanwhile, futures rose slightly, indicating market tension and potential price disruptions if deliveries fail, signalling high volatility.

COMEX market update

Copper prices on the COMEX market stood at $9,201/t, up by 1% compared to the previous close.

Indian market overview

In India's non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 752,000/t ex-Delhi. Aluminium tense scrap prices remained stable d-o-d, with ex-Delhi at INR 173,000/t and ex-Chennai at INR 174,000/t.

Global updates

Japan's exports rise in Oct'24, but potential US tariffs spark uncertainty

Japan's exports grew 3.1% in October, surpassing forecasts, driven by strong demand for chip-making equipment in China. However, US tariff threats under President-elect Trump have led to uncertainty regarding future trade, with concerns over potential economic impacts. Japan's trade deficit widened, as imports rose slightly, and the US market showed weak auto shipments.

Congo mountain collapse exposes copper reserves, sparks mixed reactions

A mountain collapse in Congo's Katanga region revealed tonnes of copper, attracting widespread attention online. While some questioned Africa's poverty despite vast resources, others expressed concerns over potential exploitation by Western nations. The Katanga region, rich in minerals such as copper and cobalt, has a history of human rights abuses linked to mining, which has prompted calls for nationalisation and fair resource management.

Recycling can cut lithium, nickel demand by 25% by 2050: IEA

Recycling battery metals such as lithium, nickel, and cobalt is set to reduce global demand by 25% by 2050, according to the International Energy Agency (IEA). With recovered metal volumes increasing rapidly, production could be significantly impacted, reducing reliance on mining. However, challenges remain, including insufficient domestic recycling infrastructure and export concerns, particularly in emerging economies.

Oil prices fall

Oil prices weakened, as supply disruptions eased with the restart of Norway's Johan Sverdrup field. Amid ongoing geopolitical risks, the US dollar's strength and China's weak demand have contributed to bearish sentiment. The market remains under pressure with a downward bias.

Brent crude futures were recorded at $73.24/barrel. Meanwhile, WTI crude oil futures remained largely stable d-o-d at $69.39/barrel.

Natural gas prices fall

Natural gas prices stood at $2.96/metric million British thermal unit (MMBtu), down by 1.03% d-o-d.

Dollar index edges down

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 106.22, down by 0.08% d-o-d. The Indian rupee was recorded at INR 84.38 against the dollar.