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

Base metals prices on the London Metal Exchange (LME) mostly exhibited mixed trends. Nickel prices declined by 1.39%. Meanwhile, metal stocks at LME-registered warehouses also showed mixed movements, with the largest inflow witnessed in nickel, which increased by 1.25% to 1.175 mnt.

COMEX market update

Copper prices on the COMEX market remained stable, settling at $9,257/t compared to the previous close.

India market overview

Aluminium

As per BigMint, aluminium tense scrap prices remained stable, with ex-Delhi-NCR prices at INR 177,000/t and ex-Chennai prices at INR 178,000/t.

In July 2024, the total imports of aluminium alloyed ingots increased to 22,644 t, up by 26% from 17,965 t in June.

Copper

Domestic copper armature prices were assessed at INR 736,000/t ($8,770/t) exy-Delhi.

Global market updates

India's manufacturing growth slows

India's manufacturing growth fell to a three-month low of 57.5 in August, down from 58.1 in July, due to softer demand. Despite this dip, the index remains above 50, indicating expansion. Growth for the last quarter slowed to 6.7% from 7.8%, with softer government spending impacting the economy. Inflation fell to 3.54% in July, and a rate cut is anticipated.

Drop in zinc mine output set to squeeze production

Global zinc mine output declined by 3.4% in H1CY'24, continuing a three-year trend. China, a major producer, faces a raw material squeeze, as spot treatment charges have dropped to multi-year lows. This has led to a 22% y-o-y drop in concentrate imports and a 2.8% y-o-y decrease in refined zinc production, partly due to severe weather constraints.

South Korea's export growth slows

South Korea's exports rose 11.4% in August, marking the 11th consecutive increase m-o-m but slowing down from July's 13.9%. Overall, it was below forecasts, with semiconductor exports hitting a five-month low and auto sales declining for the third month. Exports to the EU surged by 16.1%, and imports grew by 6.0%. The trade surplus widened to $3.83 billion.

GM delays $330 mn investment in Lithium Americas

General Motors has postponed a $330 million investment in Lithium Americas until 20 December, affecting the Thacker Pass project. The delay is linked to the miner's need to secure a $2.26 billion US Energy Department loan and political uncertainties around the US presidential election. Lithium Americas' shares fell 6.3% as a result.

Oil prices drop

Oil prices fell on Monday, driven by a confluence of market factors. Amid geopolitical tensions, factors such as increased OPEC+ output, the ongoing Libyan supply issues, and sluggish demand from China and the US contributed to the overall decline.

Brent crude oil futures were recorded at $76.41/barrel, while West Texas Intermediate (WTI) crude oil futures decreased slightly by 0.46% to $73.11/barrel.

Natural gas