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

Base metals prices on the London Metal Exchange (LME) mostly exhibited mixed trends. Copper prices declined by 2.49%. Meanwhile, metal stocks at LME-registered warehouses also showed negative movements, with the largest outflow witnessed in copper, which decreased by 0.89% to 0.317 million tonnes (mnt).

COMEX market update

Copper prices on the COMEX market dropped by 3%, settling at $8,988/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 176,500/tonne (t) and ex-Chennai prices at INR 177,500/t. Imported aluminium scrap prices in India rose w-o-w, despite a decline in LME aluminium prices. Meanwhile, transactional activity remained low due to significant bid-offer disparities in the market.

Copper

Domestic copper armature prices were assessed at INR 728,000/t ($8,671/t) exy-Delhi.

Global market updates

US manufacturing shows slight improvement

In August, U.S. manufacturing showed slight improvement with a PMI rise to 47.2, but continued contraction in new orders and production suggest ongoing challenges. Construction spending fell 0.3% in July, reflecting broader economic weakness and modest price pressures.

Japan's service sector witnesses growth

Japan's service sector continued its expansion in August, with the PMI holding steady at 53.7. This growth was driven by a rebound in export sales, contrasting with weaker manufacturing data and global economic uncertainties. The sector's optimism faces challenges from slowing global demand and weaker export figures.

Tesla's sales in China rise

In August, Tesla's sales of China-made electric vehicles grew by 3% y-o-y, driven by strong performance in smaller cities and boosted by government incentives. Despite global downsizing, local sales continue to rise, with the potential for a record-breaking third quarter in 2024.

Glencore's stake sale

Glencore's stake sale talks for Koniambo Nickel SAS (KNS) continue as the New Caledonian nickel producer has halted its furnaces. This shutdown, affecting the 1,200 staff, follows Glencore's exit decision and ends the operations since March. The broader New Caledonian nickel industry faces further strain with unrest and minimal operations by other key players, Eramet and Prony Resources.

Oil prices down

Oil prices dropped due to expectations of a resolution in Libya's political dispute and concerns about weaker global demand. Political tensions in Libya and economic slowdowns in the U.S. and China are contributing to market uncertainties. Brent crude oil futures were recorded at $73.44/barrel, while West Texas Intermediate (WTI) crude oil futures edged down by 0.50% to $69.99/barrel.

Natural gas prices inch down