Base metals prices on LME show positive trends; stocks see mixed movements

• China's aluminium tax cut shakes markets
  
  
• IMF warns Asia of retaliatory tariff risks
  
  

Base metals prices on the London Metal Exchange (LME) showed positive trends, with lead witnessing the highest gain of 1.74% d-o-d. Meanwhile, stocks at LME-registered warehouses witnessed mixed movements, with lead surging by 26.72% d-o-d.

COMEX market update

Copper prices on the COMEX market remained stable at $8,995/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 750,000/t ex-Delhi. Aluminium tense scrap prices remained stable d-o-d, with ex-Delhi at INR 172,000/t and ex-Chennai at INR 173,000/t.

Global updates

China's aluminium export tax revision shakes global market

China's move to reduce VAT tax rebates on aluminium semi-manufactured exports from 13% to 9% has sent shockwaves through global markets. The policy, effective 1 December, could cut over 5 million tonnes (mnt) of Chinese aluminium from international supply, impacting prices. The shift aims to address trade tensions but may lead to reduced exports and market adjustments as processors cope with the financial strain.

IMF warns Asia of risks of retaliatory tariffs

The International Monetary Fund (IMF) cautioned that retaliatory tariffs could harm Asia's economic growth, disrupt supply chains, and increase costs. With rising trade tensions, such tariffs could hurt global trade, raise inflation, and lead to tighter US monetary policies. While Asia's growth remains strong, uncertainty over trade and monetary policies poses risks for the region's stability and global capital flows.

Hindalco to benefit from China's export tax rebate reduction

Hindalco expects to gain from China's reduction of export tax rebates on aluminium and copper. This move will reduce cheap imports, easing pressure on Indian producers. Hindalco's managing director, Satish Pai, expressed optimism, expecting lower cheap Chinese exports. As a result, Hindalco shares rose 5.7%, while Chinese aluminium stocks declined.

Oil prices rise

Brent crude futures were recorded at $73.43/barrel. Meanwhile, WTI crude oil futures edged up by 0.16% d-o-d to $69.27/barrel.

Natural gas prices fall

Natural gas prices stood at $2.96/metric million British thermal unit (MMBtu), down by 0.24% 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 106.16, down by 0.04% d-o-d. The Indian rupee was recorded at INR 84.40 against the dollar.