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

Base metals prices on the London Metal Exchange (LME) exhibited mostly varied trends, with nickel witnessing the highest gain of 0.33%. Meanwhile, metal stocks at LME-registered warehouses showed negative movements, except for lead, which remained stable.

COMEX market update

Copper prices on the COMEX market remained stable, settling at $10,011/tonne (t) compared to the previous close.

Indian market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 772,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 175,500/t and ex-Chennai prices at INR 176,500/t.

Global updates

Elliott loses LME nickel lawsuit appeal

Elliott Associates, a US-based hedge fund, has lost an appeal to overturn the London High Court's dismissal of its lawsuit against the LME. The dispute arose when the LME cancelled nickel trades of over $12 billion in March 2022, when prices doubled to a record high of above $100,000/t. The Court of Appeal upheld that the LME acted lawfully to maintain market stability during extreme price volatility. The LME welcomed the ruling, affirming its commitment to modernisation efforts.

Nickel prices rise amid production setbacks

Vale has halted operations at its Onca Puma nickel mine in Brazil due to transmission grid damage from strong winds. Additionally, the Ambatovy nickel mine in Madagascar faces supply issues following pipeline damage in September. These disruptions have led to rising nickel prices and a significant impact on global nickel production.

Copper demand for electric vehicles remains strong

Despite slowing electric vehicle (EV) sales due to infrastructural challenges, copper demand remains robust, reports commodity trader IXM. Technological advances in battery chemistry, particularly lithium iron phosphate, have also shown promise. Additionally, the recyclability of battery chemistry has emerged as an important factor affecting production decisions.

Canada to enforce aluminium and steel tariffs on China

Canada will impose tariff surcharges on aluminium and steel imports from China, starting 22 October 2024. Deputy Prime Minister Chrystia Freeland stated that the move aims to protect Canadian workers and industries from China's trade practices. The surtaxes, which mimic US measures, exclude goods in transit before the deadline. Concerns over supply chain adjustments are being addressed by the Canadian government.

Oil prices drop

Brent crude oil futures were recorded at $79.62/barrel, while West Texas Intermediate (WTI) crude oil futures edged down by 1.69% to $75.84/barrel.

Natural gas prices inch down

Natural gas prices were recorded at $2.73/metric million British thermal unit (MMBtu), down by 0.36%.

Dollar index edges up

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 102.18, slightly up by 0.01%. The Indian rupee was recorded at INR 83.93 against the dollar.