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 copper prices witnessing the highest gain of 0.76%. Meanwhile, metal stocks at LME-registered warehouses also showed contrasting movements, with the largest inflow witnessed in zinc, which increased by 0.74% to 0.258 million tonnes (mnt).

COMEX market update

Copper prices on the COMEX market remained stable, settling at $9,552/tonne (t) compared to the previous close.

India market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 742,000/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.

According to BigMint, total imports of aluminium alloyed ingots saw stability m-o-m with a marginal 0.8% rise, with the total volume rising from 22,644 t in July to 22,829 t in August, 2024. ADC-12 imports fell dramatically by 41.7%, from 3,585 t in July to just 2,089 t in August. This severe drop could reflect a downturn in its demand, owing to weak demand and already existing inventories with manufacturers.

Global market updates

Bank Indonesia's rate cuts ahead

Bank Indonesia plans two more interest rate cuts in fourth quarter (Q4), following a surprise reduction on 18 September. A Reuters poll indicates a likely 25 basis-point drop to 5.75% in October, driven by a stronger rupiah and subdued inflation. With US Federal Reserve easing expected, BI can focus on boosting economic growth without jeopardising currency stability.

China unveils stimulus to boost economy

China's central bank has announced significant monetary stimulus and support for the property market to counter deflation and stimulate growth. Key measures include lowering reserve requirements, cutting interest rates, and reducing mortgage rates. Despite these efforts, analysts warn that additional fiscal stimulus is necessary to revitalise real economic activity. The moves aim to restore confidence amid ongoing economic challenges.

Cobre, BHP plan copper exploration JV in Botswana

Cobre and BHP Group's subsidiary have signed a letter of intent to form a joint venture (JV) for exploring copper-silver deposits in Botswana's Kalahari Copper Belt. The JV will focus on Cobre's Kitlanya West and East projects, enhancing discovery potential through BHP's expertise. The deal awaits final approval and due diligence. Cobre retains ownership of its other projects.

Aurubis projects earnings decline amid falling metal prices

Aurubis, Europe's largest copper producer, anticipates lower earnings next year due to falling metal prices and production challenges. The company forecasted earnings before taxes between $300-400 million for 2024-2025, down from $380-480 million for the current year. Shares dropped 8% following the announcement, influenced by high start-up costs at a new recycling plant and technical issues during a production ramp-up.

Oil prices rise

Oil prices rose as China implemented new monetary stimulus and tensions in the Middle East intensified, potentially disrupting supply. China's central bank unveiled measures to bolster the economy, while military actions between Israel and Hezbollah raised concerns about supply stability, impacting market sentiment.

Brent crude oil futures were recorded at $74.72/barrel, while West Texas Intermediate (WTI) crude oil futures edged up by 1.28% to $71.27/barrel.

Natural gas prices inch up

Natural gas prices were recorded at $2.64/metric million British thermal unit (MMBtu), up by 1.30%.

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