Base metals prices on LME show varied trends; stocks witness mixed momentum

• Domestic, global markets see contrasting trends
  
  
• Japan rethinks spending amid rising debt
  
  

Base metals prices on the London Metal Exchange (LME) showed varied trends with the prices of zinc dropping the highest by over 2% d-o-d. Similarly, inventories at LME-registered warehouses witnessed mixed movements, with zinc stocks gaining 3% d-o-d.

COMEX market update

Copper prices on the COMEX market increased by 1% to $9,112/tonne (t) compared to the previous close.

Indian market overview

Aluminium tense scrap prices remained stable d-o-d, with ex-Delhi at INR 173,000/t and ex-Chennai at INR 174,000/t.

Copper prices in India declined w-o-w, with domestic armature and secondary CCR prices down 1.5% and 2.1%. Market activity remains subdued, driven by reduced purchasing from semi-finished product manufacturers. Imported prices softened, influenced by LME declines, but a supply tightening post-holidays may lead to a price rebound in December.

Global updates

Indonesia to review miners' compliance with rules

Indonesia will review miners' compliance with environmental rules and production quotas under the RKAB to ensure sustainable resource management. Nickel smelters have faced ore shortages, and the government is focused on managing supply and demand. Imports of nickel ore surged in 2024, highlighting the challenges in meeting domestic demand.

McEwen Copper seeks $2.5 billion for Los Azules mine construction

McEwen Copper is seeking $2.5 billion in investments to advance the construction of the Los Azules copper mine in Argentina. The project, expected to produce 175,000 t annually, aims to qualify for Argentina's tax incentives and has attracted interest from companies like BHP and Rio Tinto's Nuton.

China extends U.S. tariff exemptions until 2025

China will extend tariff exemptions for certain U.S. products, including rare earth metal ore, medical disinfectants, and nickel-cadmium batteries, until February 28, 2025. These exemptions apply to items previously targeted by additional tariffs as part of China's countermeasures against U.S. Section 301 actions, according to the State Council.

China's home prices to decline 6% in 2024

China's home prices are expected to decline 6% in 2024, slowing from an 8.5% forecast in August, and stabilize in 2026. Policymakers' support measures, including lower down payments and tax breaks, are aiding recovery. Property sales are projected to shrink by 5% in 2025, improving from previous forecasts.

Japan's rising debt costs challenge spending plans

Japan's retreat from ultra-low interest rates is pressuring the government to rethink funding for its large spending packages, including permanent tax breaks. With rising debt servicing costs and reduced Bank of Japan bond purchases, Japan faces challenges in managing its 1,100 trillion yen debt pile and future bond issuance.

Oil prices edge up

Brent crude futures were recorded at $73.3/barrel today. Meanwhile, WTI crude oil futures increased by 0.55% d-o-d to $69.10/barrel.

Oil prices rose slightly on today amid renewed supply risks, as Israel and Hezbollah exchanged ceasefire violation accusations. However, Brent futures were down 2.4% and WTI fell 2.9% for the week, with trading volume thin due to the Thanksgiving holiday. Investors are awaiting OPEC+ output policy decisions.

Natural gas prices gain

Natural gas prices stood at $3.309/metric million British thermal unit (MMBtu), up by 3.28% d-o-d.

Dollar index drops

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 105.89, down by 0.15% d-o-d. The Indian rupee was recorded at INR 84.5 against the dollar.