Base metals prices on LME show varied trends, stocks witness outflow barring nickel
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Base metals prices on the London Metal Exchange (LME) showed mixed trends. Notably, zinc saw the largest increase of 1.6%. Meanwhile, metal stocks at LME-registered warehouse showed a negative movement except nickel. Additionally, copper prices remained positive supported by a strike at Lundin Mining's Caserones mine, positive U.S. data, and a drop in Shanghai copper inventories. However, the global market still faces a surplus, with July exports from China declining amid economic challenges.
COMEX market
Copper prices on COMEX was stable at $9,283/t against the previous closing.
India market overview
In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 725,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices increased by INR 1000/t, with ex-Delhi NCR prices at INR 176,000/t and ex-Chennai prices at INR 177,000/t. Spot prices of aluminium ADC12 alloy ingots (non-OEM) in Delhi NCR and Chennai increased by INR 1,000/t w-o-w, according to BigMint's latest assessment. In Delhi-NCR, ADC12 spot prices were assessed at INR 208,000/t ex-Delhi and Chennai, ADC12 prices were reported at INR 210,000/t on an immediate payment basis, excluding GST. Meanwhile, the current spread between tense and ADC12 spot levels stood at INR 32,000-33,000/t.
Major market updates
Hindustan Zinc, JNCASR team up for advanced zinc batteries
Hindustan Zinc Limited (HZL) has partnered with Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR) to advance sustainable energy storage through next-generation zinc-based batteries. The MoU, signed on 21 August, 2024, seeks to develop cost-effective and durable alternatives to expensive lithium batteries, supporting commercialisation efforts.
India's August PMI signals robust growth
India's business activity remained robust in August, driven by strong services despite a slight slowdown in manufacturing. HSBC's flash Composite PMI dipped to 60.5 from 60.7, indicating ongoing growth. Services PMI rose to 60.4, while manufacturing PMI decreased to 57.9. Price pressures eased, with retail inflation falling to a five-year low.
South Korea holds steady rate again
South Korea's central bank maintained its benchmark interest rate at 3.50% for the thirteenth consecutive meeting on 22 August, prioritising inflation control despite growing calls for rate cuts. This decision aligns with expectations from 38 of 40 economists.
Codelco's green push: electric buses, recycling
Chilean copper giant Codelco is investing in sustainability at its El Teniente mine, the world's largest underground copper mine. Key initiatives include a fleet of 100 electric buses, cutting CO2 emissions by 3,000 t annually, and recycling metal materials. Despite these efforts, the environmental impact of copper mining remained significant.
Fed expected to cut rates in September
The Federal Reserve is likely to cut interest rates in September, as indicated by the minutes from its July meeting. Most officials viewed a rate reduction as appropriate if economic conditions remain stable. Markets anticipate up to a full percentage point in cuts by year-end, with further guidance expected from upcoming economic reports.
Oil prices down
Oil prices fell after the U.S. revised job growth sharply lower, increasing economic uncertainty. Concerns over China's economic weakness and geopolitical risks, including attacks on a Greek-flagged tanker, further pressured the market. Brent oil futures were recorded at $76.04/barrel, down by 0.01%, while WTI crude oil futures fell by 0.17% to $71.81/barrel at the time of reporting.
Natural gas prices down
Natural gas prices were recorded at $2.176/MMBtu, down by 0.05%.
Dollar index
The dollar index, which measures value of the greenback against a basket of six major currencies, hovered at 101.072, down by 0.16%. The Indian rupee was recorded at INR 83.95 against the dollar, compared to the previous close.
