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 3.05%. Meanwhile, metal stocks at LME-registered warehouses showed a downtrend, except for nickel, which recorded an inflow of 0.49% to reach 0.130 million tonnes (mnt).

COMEX market update

Copper prices on the COMEX market decreased by 1%, settling at $10,004/tonne (t) compared to the previous close.

Indian market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 773,000/t ex-Delhi. Aluminium tense scrap prices remained stable, with ex-Delhi-NCR prices at INR 175,000/t and ex-Chennai prices at INR 176,000/t.

Global market updates

India's manufacturing growth slows

India's manufacturing growth hit an eight-month low in September, with the Purchasing Managers' Index (PMI) dropping to 56.5 from 57.5 in August. Demand and output softened, while export growth declined significantly. Input costs rose, yet price inflation eased, impacting manufacturers' margins. Despite these challenges, the index remains above 50, indicating ongoing growth in the sector.

Dockworkers' strike halts East Coast, Gulf ports

Dockworkers at 36 US East Coast and Gulf ports began a strike on 1 October 2024, following stalled contract negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX). This work stoppage could cost the U.S. economy billions, disrupt transportation schedules, and lead to shortages and higher consumer prices due to delays in container traffic.

Tsingshan cuts nickel production amid ore shortages

China's Tsingshan has reduced ferronickel output in Indonesia due to ongoing ore supply shortages caused by delays in mining quota approvals. This has raised production costs, leading smelters to source ore from the Philippines. Despite an annual nickel output quota of 240 mnt, the company's production cuts highlight challenges in Indonesia's nickel industry, affecting both NPI and matte production.

BHP forecasts rise in copper demand by 2035

BHP predicts global copper demand will grow by 1 mnt annually until 2035, driven by copper-intensive technologies. This increase, double the past 15 years' growth, reflects a shift in energy and digital sectors. However, production faces challenges from rising costs and declining ore grades, necessitating a $250 billion investment for expansion from 2025 to 2034.

Oil prices rise

Oil slumped 17% in third quarter (Q3), the largest quarterly drop in a year, as fears of escalating Middle East conflicts were overshadowed by declining global demand. Geopolitical tensions arose from Israel's attacks in Lebanon and Yemen, while concerns about weak demand from China and potential increases in OPEC+ output added pressure to the market.

Brent crude oil futures were recorded at $71.73/barrel, while West Texas Intermediate (WTI) crude oil futures edged up by 0.06% to $68.21/barrel.

Natural gas prices inch down

Natural gas prices were recorded at $2.90/metric million British thermal unit (MMBtu), down by 0.51%.