Base metals prices on LME show varied trends, lead stocks dip over 2%

Base metals prices on the London Metal Exchange (LME) show mixed trends. Notably, zinc witnessed the largest increase of 2.52%. Meanwhile, metal stocks at LME-registered warehouse showed a negative movement except nickel. Additionally, a significant outflow was seen in lead, which was down by 2.11%.

Zinc prices rose as international supply eased and supplies remained tight. The surplus fell to 8,300 t in May from 15,300 t in April. Weak US economic growth and expectations of a Fed rate cut also supported prices. China's, zinc output fell, with output lower than expected. The closure of a mine in Australia added to supply concerns.

COMEX market

Copper prices on COMEX is stable at $8,690/t against the previous closing.

India market overview

Copper

BigMint reported a weekly drop in domestic copper armature prices to INR 720,000/t, down by 3.2%. LME copper prices hit a 4-month low at $8,750/t, with stocks at a 2.5-year high due to weak Chinese demand. Secondary CCR rod prices fell to INR 764,000/t, while primary CC rods dropped to INR 788,000/t. Copper scrap imports into India decreased by 7% y-o-y in H1CY'24.

Zinc, lead

Global updates

US bans imports from five Chinese companies over Uyghur forced labour

The U.S. has banned imports from five Chinese firms, including Rare Earth Magnesium Technology and Zijin Mining Group, due to allegations of Uyghur forced labour. These companies are now on the Uyghur forced Labour Prevention Act Entity List, which targets goods linked to forced labour. China denies these claims.

Marubeni sells low-carbon aluminum billets

Marubeni, under a partnership with Rio Tinto, has sold Renewal low-carbon aluminum billets to the Fujisash Group, comprising Fuji Light Metal Co., Ltd. and Fujisash Co., Ltd. These billets, produced at Rio Tinto's renewably-powered New Zealand aluminum smelters, will be used for aluminium sashes and curtain walls. This transaction represents the first sale of RenewAl billets in Asia, enhancing environmental value and supporting sustainable supply chains.

Serbian protests erupt over Rio Tinto's lithium mine project

Serbian villagers, led by farmers, have ignited nationwide protests against Rio Tinto's planned lithium mine in western Serbia. Concerns about pollution and health risks from mining have driven thousands to demand a ban on lithium exploration. The Serbian government, which sees the $2.4 billion project as vital for economic growth, faces increasing pressure.

China's EV surge: NEVs reach 50.7% of sales in July

In July, new energy vehicles (NEVs) constituted 50.7% of car sales in China, marking a major leap in EV adoption. NEV sales grew 37% y-o-y, with pure electric vehicles rising 14.3% from June. The U.S. EV share was 18% early in 2024. NEV surge has cut lead battery demand, boosting lithium-ion technologies.

Canada nickel reports strong findings at reid property

Canada Nickel's exploration at the Reid property showed promising results, with long intervals of nickel-bearing rock. The best result included 661 meters of 0.29% nickel. All eight central core drill holes had over 620 meters of nickel. With a larger area than Crawford, Reid's resource estimate is due in late 2024. Crawford, set to begin production by late 2027, aims to produce 45,000 t of nickel annually.

Oil prices up

Oil prices rose due to heightened geopolitical risks, including escalated conflict in the Middle East and attacks on international shipping by Houthi militants. Additionally, supply concerns were exacerbated by disruptions in Libya and the impact of U.S. jobs data, which eased recession fears and supported prices despite a stronger dollar.

Brent oil futures remained range-bound to $79.16 per barrel. Meanwhile, crude oil WTI futures were up by 0.05% to $76.23 per barrel at the time of reporting.

Natural gas prices up

Prices of natural gas were recorded at $2.15/MMBtu, up by 1.36%.

Dollar index

The dollar index, which gauges value of the greenback against a basket of six different currencies, hovered at 102.99, which was down by 0.03%.

The rupee was recorded at INR 83.89 against the dollar, largely stable compared to the previous closing.