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

• South Africa shuts key border crossing following floods
  
  
• Indian aluminium players to gain from global tailwinds
  
  

Base metals prices on the London Metal Exchange (LME) showed positive trends, with lead recording the highest gain of 1.81% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed negative movements, with zinc decreasing by 1.20% d-o-d.

COMEX market update

Copper prices on the COMEX market stood at $9,782/tonne (t), up 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 750,000/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

Indian aluminium players poised for gains

Indian aluminium companies, including Vedanta and NALCO, are set to benefit from two key global factors - potentially lower exports from China and restrictions proposed by the EU on imports of Russian aluminium. Additionally, if aluminium prices remain steady through 2025, NALCO's near-term earnings may see an upgrade, according to Emkay Research. An increase in global demand for aluminium, driven by economic recovery and industrial use, is also expected to benefit the sector.

EGA achieves key US expansion milestone

EGA has reached a key milestone in expanding Spectro Alloys, its US recycling firm, with civil works now complete. The first phase will increase secondary billet production by 55,000 t annually. The first hot metal is expected in mid-2025, with full production ramp-up expected by Q1CY'26.

South Africa shuts key border crossing due to flooding

South Africa has closed Grobler's Bridge, a vital border crossing with Botswana, after heavy rains caused flooding. This route is essential for copper transport from Zambia and the Democratic Republic of the Congo (DRC) to Durban Port. Travellers and small vehicles can use alternate ports, while cargo trucks are being redirected to crossings such as Skilpadshek, Ramatlabama, Beitbridge, and Kopfontein.

Oil prices rise

Brent crude futures were recorded at $81.6/barrel today. Meanwhile, WTI crude oil futures increased slightly by 0.80% d-o-d to $79.31/barrel.

Natural gas prices drop

Natural gas stood at $4.20/metric million British thermal unit (MMBtu), down by 1.34% d-o-d.

Dollar index inches up

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 108.96, up by 0.12% d-o-d at the time of reporting. The Indian rupee was recorded at INR 86.58 against the dollar.