Base metals prices on LME witness negative trends; stocks experience outflows

Base metals prices on the London Metal Exchange (LME) mostly exhibited downward trends. Meanwhile, metal stocks at LME-registered warehouses showed negative movements, except for nickel, which stood at 0.12 million tonnes (mnt), up by 0.4%.

COMEX market update

Copper prices on the COMEX market slightly decreased by 1% from the previous close, settling at $8,987/tonne (t).

India market overview

Aluminium

As per BigMint, aluminium tense scrap prices remained stable, with ex-Delhi-NCR prices at INR 174,000/t and ex-Chennai prices at INR 175,000/t. Imported aluminium scrap prices in India drifted lower by up to 2.8% w-o-w amid a drop in LME aluminium prices. Meanwhile, transactional activities remained on the lower side due to bid-offer disparities seen in the market for some major grades.

Copper

Domestic copper armature scrap prices remained range-bound at INR 727,000/t exy-Delhi. Copper prices on the LME varied by $20-30/t d-o-d and hovered at $9,073/t. Secondary copper rod prices were at INR 777,000/t, with few trades heard. In the imported segment, copper motor mix offers from the US were at $1,150-1,200/t.

Global market updates

Ozernoye plant begins zinc production

Russia's Ozernoye plant has commenced zinc concentrate production after delays from a 2023 fire and US sanctions. Positioned near a major zinc mine, the plant is set to reach full capacity by 2025, processing up to 6 mnt of ore annually and producing 600,000 t of concentrate. This will place it fifth globally, with a 4.5% market share.

EU seeks easier investment in Australian critical metals

The European Union (EU) urged Australia to simplify foreign investment to enhance access to critical metals such as lithium, cobalt, and nickel. Gabriele Visentin, the EU ambassador to Australia, stressed the importance of diversifying supply chains away from China. This push aims to strengthen EU-Australia collaboration in critical raw materials amid stalled free trade agreement talks.

Oil prices rise

Hurricane Francine has led to significant disruptions in oil and gas production in the US Gulf of Mexico, with about 24% of crude and 26% of natural gas output offline. This has alleviated some concerns over global demand following OPEC's reduced forecasts for 2024 and 2025. The storm's impact is contributing to market volatility.

Brent crude oil futures were recorded at $69.87/barrel, while West Texas Intermediate (WTI) crude oil futures edged up by 0.99% to $66.40/barrel.

Natural gas prices

Natural gas prices were recorded at $2.23/metric million British thermal unit (MMBtu), up by 0.09%.