Base metals prices, stocks on LME show negative trends

• Uptick in Chinese factory activity prompts oil price rise
  
  
• India's factory output growth slows amid high inflation
  
  

Base metals prices on the London Metal Exchange (LME) showed negative trends, with nickel dropping the highest, by 1.32% d-o-d. Similarly, inventories at LME-registered warehouses witnessed outflows, except for nickel, whose stocks gained 2% d-o-d.

COMEX market update

Copper prices on the COMEX market increased by 1% to $9,112/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 173,000/t and ex-Chennai at INR 174,000/t.

Global factory output in Nov'24: China rallies, India decelerates

• China: China's factory activity expanded at its fastest pace in five months, driven by increased new orders, including a rise in export orders. Optimism surged due to stronger demand and the government's stimulus measures, despite cautious hiring and ongoing trade uncertainties.
  
  
• India: India's factory output growth slowed due to inflationary pressures and easing domestic demand. However, strong international demand and capacity expansion helped maintain positive growth momentum.
  
  
• US: US manufacturing showed signs of stabilisation, with a moderate slowdown. The sector still faces weak demand, slow production, and some product shortages, but optimism from potential business-friendly policies is providing support.
  
  
• Japan: Japan's factory output saw its sharpest decline in several months, driven by weak demand, particularly in the semiconductor and automotive sectors. Production cuts were made as firms adjusted to the slow market conditions.
  
  
• Eurozone: The Eurozone's manufacturing output fell sharply, with significant declines in both domestic and international demand. The downturn affected all major economies within the zone, with production cuts and job losses accelerating.
  
  
• UK: The UK manufacturing sector faced a significant contraction, with output declining due to falling orders and rising costs caused by supply chain disruptions and tax hikes. Small businesses were particularly impacted by the downturn in demand.
  
  

Oil prices edge up

Oil prices rose slightly today, amid expectations of increased demand from stronger factory activity in China. However, the optimism was counterbalanced by concerns that the US Federal Reserve may hold off on rate cuts at its upcoming meeting, which prompted uncertainty.

Brent crude futures were recorded at $72.02/barrel today. Meanwhile, WTI crude oil futures increased by 0.16% d-o-d to $68.21/barrel.

Natural gas prices drop

Natural gas stood at $3.19/metric million British thermal unit (MMBtu), down by 0.53% d-o-d.

Dollar index rises

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 106.55, up by 0.06% d-o-d. The Indian rupee was recorded at INR 84.73 against the dollar.