Base metals prices on LME witness positive trends, stocks experience outflows

Base metals prices on the London Metal Exchange (LME) mostly exhibited positive trends, with nickel witnessing the largest gain by 2.36%. Meanwhile, metal stocks at LME-registered warehouses showed negative movements except nickel which stood at 0.12 mnt, up by 0.44%

COMEX market update

Copper prices on the COMEX market slightly increased by 1% from the previous close, settling at $9,090/tonne (t).

India market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 725,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi-NCR prices at INR 173,500/t and ex-Chennai prices at INR 174,500/t.

India's spot prices of aluminium ADC12 alloyed ingots experienced a slight decline w-o-w in both the northern and southern regions, driven by reduced demand and lower domestic raw material costs.

BigMint's benchmark assessments for the ADC12 (non-OEM) grade were at INR 206,500/t in Delhi and INR 208,500/t in Chennai, both down by INR 2,000/t.

Global market updates

Fed may cut rates by 0.25% next week

The Federal Reserve is anticipated to implement a quarter-percentage-point rate cut at its upcoming meeting on 17-18 September. Despite persistent core inflation, recent data showing a slower rise in the consumer price index reduces the likelihood of a larger cut. Traders now see a less than 20% chance of a half-percentage-point reduction.

Russia mulls export restrictions on strategic metals

Russian President proposed limiting exports of uranium, titanium, and nickel as a response to Western sanctions. This has driven up nickel prices and boosted shares in uranium mining companies.

Codelco faces production drop amid mixed industry results

Chile's Codelco saw a 10.7% drop in copper output to 111,400 t in July, continuing its struggle after last year's record low. Meanwhile, BHP's Escondida mine increased output by 29%, while Collahuasi saw a 6% decline.

Hydro opens new aluminium recycling plant in Hungary

Hydro has inaugurated a new aluminium recycling facility in Szekesfehervar, Hungary, with an annual capacity of 90,000 t. This plant will primarily support the automotive market, processing 15,000 t of post-consumer scrap annually, with plans to expand. Located next to Hydro's advanced extrusion plant, it will enhance closed-loop recycling by reusing production scrap. Hydro's recycling network now includes 34 facilities worldwide, with a total capacity of over 2.3 million tonnes (mnt) annually.

Oil prices under pressure amid bearish market

Despite imminent production cuts by Russia, Iraq, and Kazakhstan to compensate for overproduction, oil markets remain bearish. Hedge funds are heavily short on crude, and recent shutdowns in the Gulf of Mexico may not reverse the downtrend. Brent crude oil futures were recorded at $71.14/barrel, while West Texas Intermediate (WTI) crude oil futures edged up by 0.65% to $67.75/barrel.

Natural gas prices inch up

Natural gas prices were recorded at $2.27/metric million British thermal unit (MMBtu), up by 0.18%.