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 copper witnessing the largest gain by 1.12%. Meanwhile, metal stocks at LME-registered warehouses showed negative movements.

COMEX market update

Copper prices on the COMEX market slightly increased by 2% from the previous close, settling at $9,117/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 175,500/t and ex-Chennai prices at INR 176,500/t.

Global market updates

LME's liquidity challenge: impact on production

The LME struggled with liquidity fragmentation, with only 48% of trades on its electronic platform and a significant portion of open interest on monthly prompt dates. This inefficiency hinders price competition and transparency, impacting production by potentially distorting metal prices and creating obstacles for manufacturers relying on accurate market data.

China's export growth slows amid global trade tensions

China's export growth likely slowed in August, with a 6.5% increase, down from July's 7.0%, amid cooling global demand and rising trade barriers. Imports grew by 2%, reflecting weak domestic demand. Escalating trade tensions, including tariffs on Chinese goods from Canada and others, further weigh on China's economic recovery efforts, despite expected fiscal spending boosts.

Dollar steady, yen dips ahead of U.S. inflation data

The dollar remained stable while the yen retreated from one-month highs as traders await U.S. inflation data, which could influence the Federal Reserve's interest rate decision. Markets are uncertain whether the Fed will opt for a 25 or 50 basis point rate cut at its September meeting.

Oil prices

The Brent and WTI crude oil futures dropped significantly in early September, reaching the lowest levels since 2011 due to concerns about weakening U.S. and Chinese economies and oversupply. Despite OPEC+ delaying output increases, oil prices fell further.

Brent crude oil futures were recorded at $71.69/barrel, while West Texas Intermediate (WTI) crude oil futures edged down by 0.31% to $68.50/barrel.

Natural gas prices

Natural gas prices were recorded at $2.12/metric million British thermal unit (MMBtu), down by 1.94%.