Base metals prices on LME show varied trends; stocks witness negative movements

Base metals prices on the London Metal Exchange (LME) exhibited mostly mixed trends, with nickel witnessing the highest gain of 1.5%. Meanwhile, metal stocks at LME-registered warehouses showed a downtrend, except for nickel, which recorded an inflow of 0.18% to reach 0.30 million tonnes (mnt).

COMEX market update

Copper prices on the COMEX market decreased by 1%, settling at $10,083/tonne (t) compared to the previous close.

Indian market overview

India's copper concentrate imports totalled 684,311 t during the first eight months of 2024, reflecting a 1% y-o-y growth compared to 678,767 t in the same period of 2023. The consistency in volume underscores the country's reliance on imported copper to fuel its industrial growth.

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 770,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 175,000/t and ex-Chennai prices at INR 176,000/t.

Global market updates

China's economic slowdown intensifies in Sep'24

China's factory activity contracted for the fifth consecutive month in September, with the official PMI rising slightly to 49.8 from 49.1 in August. Despite this marginal improvement, the index remains below the growth threshold (the 50-point mark), indicating contraction. Service sector growth also cooled for the first time since December.

Experts warn that persistent economic challenges, including weak demand and global trade tensions, may necessitate stronger policy interventions to stimulate growth. Otherwise, Beijing will be unable to meet its 2024 targets.

Japan's factory output declines

Japan's factory output fell 3.3% m-o-m in August, driven by typhoon disruptions and weak US vehicle sales, casting doubt on economic recovery. Motor vehicle production dropped 10.6% m-o-m, impacted by operational suspensions and certification issues. While manufacturers project a rebound in September and October, actual output may not meet expectations, which has raised concerns about future growth amid uncertain global demand.

East Coast port strike looms

A strike by the International Longshoremen's Association is set to begin on Tuesday, impacting US East Coast and Gulf of Mexico ports. The union has accused the United States Maritime Alliance of long-standing wage issues. With no negotiations scheduled before the Monday deadline, a quick resolution seems unlikely. The strike could disrupt supply chains, costing the economy billions daily and affecting about half of the nation's ocean shipping.

Oil prices rise

Brent crude oil futures were recorded at $73.00/barrel, while West Texas Intermediate (WTI) crude oil futures edged up by 1.39% to $69.13/barrel.

Natural gas prices inch down

Natural gas prices were recorded at $2.88/metric million British thermal unit (MMBtu), down by 0.45%.