Base metals prices on LME show positive trends, stocks witness mixed movements

Base metals prices on the London Metal Exchange (LME) exhibited mostly positive trends, with zinc prices witnessing the highest gain of 4.30%. Meanwhile, metal stocks at LME-registered warehouses also showed mixed movements.

COMEX market update

Copper prices on the COMEX market increased by 3%, settling at $9,875/tonne (t) compared to the previous close.

India market overview

Imported aluminium scrap prices in India drifted higher w-o-w by up to 2% amid a rise in LME aluminium prices following the Federal Reserve's rate cuts and China's new monetary stimulus and support for the property market.

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 748,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 175,000/t and ex-Chennai prices at INR 176,000/t.

India's copper pipe and tube imports reached 11,776 t in August 2024 hitting over 1.5-year high levels and a significant 33% increase m-o-m from July and over 185% y-o-y. This growth is driven by strong demand from infrastructure projects, government initiatives for electric vehicles, and the expanding heating, ventilation, and air conditioning (HVAC) market.

Global market updates

Australia's inflation hits 3-year low

Australian consumer price inflation dropped to 2.7% in August, the lowest in three years, aided by government electricity rebates. Core inflation also decreased to 3.4%. Despite this positive trend, the Reserve Bank of Australia remains cautious about rate cuts, maintaining a 4.35% cash rate as it monitors underlying inflation. Market expectations suggest potential rate cuts could begin in December.

Taiwan's August export orders increase on AI demand

Taiwan's export orders rose 9.1% y-o-y in August, reaching $50.22 billion, exceeding forecasts of 8.35%. This growth is driven by strong demand for AI-related chips and consumer electronics. Orders from China increased 2.8%, while those from the US climbed 11.2%. The government anticipates continued growth, projecting September orders to rise between 4.7% and 8.6%.

US markets surge as mining stocks rally on China stimulus

Mining stocks soared, with Freeport-McMoRan and Southern Copper rising sharply. This boost in commodity prices is expected to enhance production in the mining sector, despite mixed signals from US consumer confidence and inflation concerns.

Oil prices dip

Oil prices fell as investors doubted China's stimulus plans would sufficiently boost demand. Despite a brief increase following aggressive economic measures, analysts expressed concerns over the lack of more concrete fiscal support. Additionally, declining US consumer confidence and overall low trading activity further pressured the market.

Brent crude oil futures were recorded at $75.04/barrel, while West Texas Intermediate (WTI) crude oil futures edged up by 0.28% to $71.36/barrel.

Natural gas prices inch up

Natural gas prices were recorded at $2.57/metric million British thermal unit (MMBtu), up by 1.10%.

Dollar index

The dollar index, which measures value of the greenback against a basket of six major currencies, hovered at 100.02, slightly down by 0.15%. The Indian rupee was recorded at INR 83.53 against the dollar.