Base metals prices on LME show positive trends; stocks witness negative movements

Base metals prices on the London Metal Exchange (LME) exhibited mostly positive trends, with nickel prices witnessing the highest gain of 3.65%. Meanwhile, metal stocks at LME-registered warehouses showed negative movements.

COMEX market update

Copper prices on the COMEX market increased by 2%, settling at $10,195/tonne (t) compared to the previous close.

Indian market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 770,000/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.

Global updates

Japan's service sector shows strain

Japan's service sector expanded for the third consecutive month in September, with the PMI at 53.1, down from 53.7 in August. While new business growth remained solid, business confidence hit a 20-month low amid manufacturing weaknesses. The composite PMI also fell to 52.0, indicating broader economic challenges.

Dockworkers' strike disrupts US ports

Long lines of container ships are waiting outside US ports as the largest dockworker strike in nearly 50 years continues, with no negotiations scheduled. The strike, which has been called by the International Longshoremen's Association following unmet demands for a significant pay raise and job security, has affected the unloading of vital goods at 36 ports. If unresolved, the strike could lead to material shortages and an adverse impact on the economy.

LME to expand warehousing network into Hong Kong

The LME plans to approve the extension of its warehousing network into Hong Kong by the end of 2024, significantly boosting trading volumes. This expansion will improve metal storage accessibility near mainland China, benefiting producers and potentially enhancing production efficiency. The move is also expected to streamline operations and support increased trade in the region.

Traders navigate weaker US dollar

Traders are adjusting strategies as the US dollar slides, impacted by recent rate cuts from global central banks. With net bets on a weaker dollar rising to $14.1 billion, analysts expect currencies such as the yen, Norwegian krone, and Brazilian real to benefit. Meanwhile, predictions point to potential volatility from the upcoming US election.

Oil prices rise

Crude oil prices surged today amid fears of escalating conflict in the Middle East, particularly following missile attacks from Iran on Israel. Experts warn that Israel may retaliate by targeting Iranian oil infrastructure, potentially disrupting oil capacity or prompting proxy attacks on shipping in the Persian Gulf.

Brent crude oil futures were recorded at $74.50/barrel, while West Texas Intermediate (WTI) crude oil futures edged up by 1.53% to $71.17/barrel.

Natural gas prices inch up

Natural gas prices were recorded at $2.91/metric million British thermal unit (MMBtu), up by 1.04%.

Dollar index edges up

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 101.56, slightly up by 0.15%. The Indian rupee was recorded at INR 83.94 against the dollar.