Base metals prices, stocks on LME show mixed trends

• India's copper demand rises by 13% in FY'24
  
  
• China's copper imports hit 1-year high in Nov
  
  

Base metals prices on the London Metal Exchange (LME) showed mixed trends, with zinc gaining the highest by 1.79% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed mixed movements, with nickel stocks increasing by 0.7% d-o-d.

COMEX market update

Copper prices on the COMEX market increased by 2% to $9,359/tonne (t) compared to the previous close.

Indian market overview

In India's non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 742,000/t ex-Delhi. Aluminium tense scrap prices remained stable d-o-d, with ex-Delhi at INR 174,000/t and ex-Chennai at INR 175,000/t.

Global updates

India's copper demand grows 13% in FY'24

India's copper demand saw a 13% y-o-y increase in FY'24 to 1,700 kilotonnes, driven by economic growth, particularly in construction and infrastructure. Domestic copper cathode production grew 8% y-o-y, while imports rose 13% y-o-y. Despite flat production, the country's copper ecosystem is expected to improve with new smelting projects and quality control measures.

China's copper imports touch 1-year high in Nov

China's copper imports rose to a one-year high in November to 528,000 t, a 4.3% increase from October. The surge was driven by shipments from Africa and efforts to replenish domestic inventories. Despite falling copper prices globally, imports for the first 11 months of the year rose 1.7% y-o-y, reflecting continued demand for the metal.

China's exports, imports slow ahead of Trump's tariffs

China's exports grew at a slower pace in November, while imports unexpectedly shrank, signalling economic concerns. US President-elect Trump's threat of new tariffs on Chinese goods has added to trade uncertainties. Imports fell by 3.9% m-o-m, the worst in nine months, and exports rose by just 6.7% m-o-m, missing expectations. China's trade surplus grew to $97.44 billion.

Oil prices edge down

Oil prices edged lower, as concerns about a potential supply glut overshadowed optimism about China's planned stimulus measures for next year. Despite expectations of increased Chinese economic support, the market remains wary of surplus supply in the first half of 2025, with OPEC+ cautious about production volumes amid uncertain global conditions.

Brent crude futures were recorded at $71.79/barrel today. Meanwhile, WTI crude oil futures increased slightly by 0.60% d-o-d to $67.96/barrel.

Natural gas prices drop

Natural gas stood at $3.17/metric million British thermal unit (MMBtu), down by 0.38% d-o-d.

Dollar index up

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 105.80, up by 0.02% d-o-d. The Indian rupee was recorded at INR 84.84 against the dollar.