Base metals prices, stocks on LME show negative trends

• Trump's win, dull China stimulus weigh on copper market
  
  
• Rapid depletion of Indonesia's nickel reserves raises alarm
  
  

Base metals prices on the London Metal Exchange (LME) showed negative trends, with nickel losing 1.76% d-o-d. Meanwhile, stocks at LME-registered warehouses witnessed outflows, with lead decreasing by 0.58% d-o-d.

COMEX market update

Copper prices on the COMEX market decreased by 2% to $9,279/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 760,000/t ex-Delhi. Aluminium tense scrap prices remained stable d-o-d, with ex-Delhi at INR 172,000/t and ex-Chennai at INR 173,000/t.

Global updates

China gaining trade advantage over US in South America

In South America, particularly Peru, China is surpassing the US in trade, especially with copper and other key exports. The construction of a major port in Chancay, Peru, by China's Cosco Shipping is expected to strengthen trade routes to Asia, further tilting the region's economic focus towards China. This shift, accelerated under both Trump and Biden's administrations, challenges US influence in the region.

Indonesia's nickel reserves facing rapid depletion

Indonesia's aggressive nickel mining strategy is rapidly depleting its reserves, with high-grade reserves expected to run out by 2031 and low-grade ones by 2036 despite government efforts to reduce overexploitation. The accelerating depletion poses a significant risk to future nickel production, potentially disrupting global supply chains.

Copper prices under pressure amid Trump's re-election, China's stimulus

Copper prices reacted cautiously to Donald Trump's US election win, with market volatility reflecting broader uncertainty. The key focus was on China, where expectations of a strong stimulus package were tempered by disappointing government actions. Trump's proposed tariffs on China have added further pressure, complicating copper's price outlook and casting doubt on production-driven demand growth.

Oil prices drop

Oil prices declined, amid weak market sentiment, driven by concerns over China's insufficient stimulus plan and an oversupply outlook. Despite the announcement of a $1.4 trillion debt package, analysts doubt China's ability to significantly boost growth. Meanwhile, weak inflation and factory prices in China have compounded worries about demand, further pressuring the market.

Brent crude futures were recorded at $71.70/barrel. Meanwhile, WTI crude oil futures edged down by 0.25% d-o-d to $67.87/barrel.

Natural gas prices inch up

Natural gas prices stood at $2.94/metric million British thermal unit (MMBtu), up by 0.96% d-o-d.

Dollar index edges up

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 105.59, up by 0.19% d-o-d. The Indian rupee was recorded at INR 84.39 against the dollar.