Base metals prices on LME show positive trends; stocks witness mixed movements
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Base metals prices on the London Metal Exchange (LME) exhibited mostly positive trends, with nickel prices witnessing the highest gain of 2.29%. Meanwhile, metal stocks at LME-registered warehouses showed mixed movements.
COMEX market update
Copper prices on the COMEX market decreased by 2%, settling at $10,034/tonne (t) compared to the previous close.
Indian market overview
In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 772,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 175,500/t and ex-Chennai prices at INR 176,500/t.
Global updates
China's stimulus raises hopes for Indian steel
China's new stimulus for its real estate sector is expected to reduce steel exports, potentially benefiting Indian steel companies. With domestic hot rolled coil (HRC) prices aligning with Chinese import prices, analysts suggest short-term stability in India's steel market. However, the long-term impact remains uncertain, as China's production overcapacity and demand dynamics continue to influence global steel prices.
BOJ's rate hike plans challenged by political shift
Bank of Japan Governor Kazuo Ueda's plans to raise borrowing costs are under pressure from new Prime Minister Shigeru Ishiba, who recently stated the economy isn't ready for further rate hikes. This unexpected shift has raised doubts about the BOJ's upcoming decisions, especially with a general election approaching on 27 October . Analysts now anticipate that the BOJ may hold off on rate increases at its next meeting.
Vietnam reports strongest quarterly growth in two years
Vietnam's GDP grew 7.4% year-on-year in Q3, the highest growth rate in two years, driven by robust exports and industrial production. Exports rose 10.7% in September, while industrial output increased by 10.8%. Despite challenges from Typhoon Yagi, foreign investment inflows reached $17.3 billion in the first nine months. Inflation remained manageable at 2.63%, supporting Vietnam's 2023 growth target of 6.0% to 6.5%.
China's Forex Reserves Increase to $3.316 Trillion
China's foreign exchange reserves rose by $28.2 billion in September, reaching $3.316 trillion, surpassing analysts' expectations of $3.304 trillion. The increase is attributed to a weakening dollar, which fell approximately 1% against other major currencies, while the yuan strengthened by about 1.1% against the dollar during the same period.
Oil prices drop
Oil prices dipped after their strongest weekly rise in over a year, as concerns over oversupply and softer demand outweighed fears of escalating Middle East conflicts. Technical profit-taking was cited as a reason for the price decline amidst ongoing geopolitical tensions.
Brent crude oil futures were recorded at $77.97/barrel, meanwhile West Texas Intermediate (WTI) crude oil futures slightly edged up by 0.04% to $74.41/barrel.
Natural gas prices inch down
Natural gas prices were recorded at $2.80/metric million British thermal unit (MMBtu), down by 1.75%.
Dollar index edges up
The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 102.30, slightly up by 0.01%. The Indian rupee was recorded at INR 83.97 against the dollar.
