Base metals prices, stocks on LME show negative trends

• Japan's exports swell by 3.8% y-o-y in Nov'24
  
  
• US manufacturing output up 0.2% m-o-m in Nov
  
  

Base metals prices on the London Metal Exchange (LME) showed negative trends, with nickel decreasing by 1.31% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed outflows, with nickel stocks decreasing by 2.1% d-o-d.

Zinc prices fell 0.76% d-o-d, driven by mixed Chinese economic data and increasing smelter production. While China's industrial output improved in November, weak retail sales and shrinking imports highlighted the economy's fragility. However, a deficit in the global zinc market provided some support to prices.

COMEX market update

Copper prices on the COMEX market dropped by 2% to $9,066/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 740,000/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

Japan's Nov exports exceed expectations

Japan's exports rose 3.8% y-o-y in November, surpassing the expected 2.8% increase, driven by a weaker JPY and strong demand for chip-making equipment. However, export volumes declined slightly, reflecting the impact of the 's weakness. Despite growth, uncertainty remains due to potential US protectionist policies, with some economists predicting flat exports in the near future.

Dollar rises on Fed rate cut expectations

The US dollar strengthened on Tuesday, 17 December, against major currencies, as markets expected a 25-basis-point rate cut from the Federal Reserve. The dollar index rose to 106.97, while the euro weakened. The pound gained on stronger-than-expected wage growth, and the JPY strengthened as expectations shifted for the Bank of Japan's rate move.

US manufacturing output shows modest rise

US manufacturing output increased by 0.2% m-o-m in November, less than expected, with motor vehicle production rising 3.5%. However, aerospace production remained weak despite the end of a Boeing strike. Y-o-y, factory output fell 1%. Despite challenges, growth is expected next year, aided by lower interest rates and potential tariff impacts.

Oil prices edge up

Brent crude futures were recorded at $73.22/barrel today. Meanwhile, WTI crude oil futures increased slightly by 0.10% d-o-d to $70.15/barrel.

Natural gas prices rise

Natural gas stood at $3.33/metric million British thermal unit (MMBtu), up by 0.70% d-o-d.

Dollar index falls

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 106.61, down slightly by 0.65% d-o-d, at the time of reporting. The Indian rupee was recorded at INR 84.92 against the dollar.