Base metals prices on LME show positive trends, stocks witness outflows

• Copper tags on COMEX down by 2% d-o-d
  
  
• Aluminium Tense scrap prices firm d-o-d
  
  

Base metals prices on the London Metal Exchange (LME) showed positive trends, with zinc increasing by 2.18% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed negative movements, with zinc stocks decreasing by 1.20% d-o-d.

COMEX market update

Copper prices on the COMEX market stood at $8,799/tonne (t), down by 2% compared to the previous close.

Indian market overview

In India's non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 740,000/t ex-Delhi. Aluminium Tense scrap prices remained stable d-o-d, with ex-Delhi at INR 174,000/t and ex-Chennai at INR 175,000/t.

Global updates

India's growth to accelerate in H2FY'25

India's economic growth is set to pick up in the second half of FY'25, fuelled by strong private consumption and rural demand recovery, according to the Reserve Bank of India (RBI). Agriculture prospects are positive, while easing food prices and government infrastructure spending are expected to support growth. However, global economic risks and inflation concerns remain potential challenges.

Japan's economy set for recovery

Japan's government has forecast that the economy will reach full capacity in the next fiscal year for the first time in seven years, driven by a tight labour market. Strong demand is expected, though labour shortages may limit supply. Consumer price growth is predicted to slow to 2% from this year's 2.5%.

Oil prices edge up

Oil prices rose due to expectations of increased fiscal stimulus in China, the world's largest oil importer, aimed at boosting consumption and economic recovery. Additional support came from a forecasted decline in US crude inventories, signalling healthy demand. These factors helped maintain upward momentum in oil prices during the holiday season.

Brent crude futures were recorded at $73.62/barrel today. Meanwhile, WTI crude oil futures increased slightly by 0.11% d-o-d to $70.18/barrel.

Natural gas prices drop

Natural gas stood at $3.89/metric million British thermal unit (MMBtu), down by 1.39% d-o-d.

Dollar index falls

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 107.92, down by 0.10% d-o-d at the time of reporting. The Indian rupee was recorded at INR 85.26 against the dollar.