LME base metal prices show positive trends, with aluminium gaining over 3%

Base metal prices on the London Metal Exchange (LME) showed positive trends, with aluminium leading the gains, rising by 3.38%. However, metal stocks at LME-registered warehouses generally declined, with the exception of nickel.

COMEX market update

Copper prices on the COMEX market rose by 1%, reaching $9,284/tonne (t) compared to the previous close.

India's market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 737,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices remained stable, with ex-Delhi NCR prices at INR 175,000/t and ex-Chennai prices at INR 176,000/t.

Global market updates

Chile's Q2 GDP falls, rate cuts expected

Chile's GDP decreased by 0.6% in the second quarter of calendar year 2024 (Q2CY'24), impacted by declines in mining, services, and manufacturing. This weaker performance, following a robust Q1, may lead to additional interest rate cuts by the central bank. Economists are anticipating two more 25-basis-point reductions by the end of the year, with the aim of stimulating economic growth and controlling inflation.

Escondida mine strike ends with new deal

The union at Chile's Escondida copper mine has signed a three-year agreement with BHP, ending a strike that had threatened global copper supplies. The deal includes enhanced labour conditions and a $32,000 bonus per worker, an increase from BHP's initial offer of $28,900. Following the resolution, copper prices rose by 1% to $9,211/t, stabilising production at the world's largest copper mine.

China holds lending rates steady amid economic uncertainty

China's central bank has kept the one-year and five-year loan prime rates unchanged at 3.35% and 3.85%, respectively, in line with market expectations. This decision follows July's rate cuts intended to stimulate economic growth. Despite a decrease in bank lending to a 15-year low, Goldman Sachs predicts additional easing measures later this year.

Indian port workers plan strike over pay, pensions

Indian port workers have announced a strike starting 28 August to demand revised pay and pension benefits, affecting around 20,000 workers. This strike could exacerbate congestion at Asian and European ports, impacting global trade. Despite ongoing negotiations since March 2021, the demands have not been met. While immediate disruption might be limited, prolonged action could have severe consequences.

Oil prices down

Oil prices dropped as Israel's acceptance of a ceasefire proposal in Gaza alleviated concerns about supply disruptions. Additionally, increased oil production from Libya's Sharara field helped ease supply worries. Weak Chinese economic data raised doubts about future oil demand, while expectations of U.S. Federal Reserve rate cuts added to market uncertainty.

Brent crude oil futures were at $77.02/barrel, down by 0.82%, and WTI crude oil futures fell by 0.66% to $73.88/barrel.

Natural gas prices down

Natural gas prices were recorded at $2.22/MMBtu, down by 0.40%.

Dollar index

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 101.79, up by 0.03%.

The Indian rupee was recorded at INR 83.77 against the dollar, unchanged from the previous close.