LME base metals prices and stocks depict contrasting trends; Aluminium stocks surge 13%

Non-ferrous metals prices on the London Metal Exchange (LME) experienced varied trends. Three-month aluminium futures rose by 1.6% to settle at $2,283/tonne (t), nickel prices dipped 3.8% to $16,502/t, zinc prices edged down by 0.7% to $8,482/t, zinc prices inched up by 0.3% to $2,539/t and lead prices dropped by 1.1% to $2,058/t. Stocks on LME-registered warehouses witnessed mixed trends as well.

Notably, aluminium stocks at LME warehouses surged over 13%, reaching a 2.5-month high, signalling an oversupply of the metal amid slowing demand in China and Europe. Net inflows of 59,850 t brought total LME stocks to 504,475 t. Chinese production growth and accumulation in Asian warehouses outside LME contributed to the increase. The news briefly lowered benchmark LME aluminium prices, but short position cuts by funds pushed them back towards a five-week high of $2,269/t.

Copper prices fell due to China's 12.3% y-o-y rise in refined copper production, reaching 1.14 mnt in November. Rising inventories and a 25% drop in Chinese spot market copper concentrate fees added to supply concerns.

COMEX market

Copper prices on the Commodity Exchange (COMEX) dipped by 1% to $8,469/t from $8,557/t compared to the previous closing.

India's non-ferrous market

India's domestic aluminium scrap prices remained stable towards the beginning of the week with limited demand in the market.

Copper prices in the domestic market declined by 0.4% yesterday. Buyer activity is moderate, and there is bid-offer disparity for imported copper motor mix scrap of US origin, priced at $1,090-1,100/t CIF Mundra.

Global updates

Red sea attacks disrupt trade

Yemen's Houthi militants' attacks on Red Sea ships disrupted trade, prompting U.S. efforts to build a coalition. Vessels rerouted around Africa, impacting shipping costs. Major companies, including BP and Frontline, responded, and the crisis broadens to energy shipments, affecting oil prices. Global shipping diversions may lead to delays and higher consumer prices. The U.S. discusses a task force to protect Red Sea routes.

UK imposes carbon import levy

Britain will introduce a carbon import levy from 2027 on products like iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass and cement sectors, ensuring they face a comparable carbon price to those produced in the UK. The move aims to prevent carbon leakage and protect businesses against cheaper imports from countries with less strict climate policies.

Japanese aluminium stocks drop 3.3%

Aluminium stocks at three major Japanese ports fell 3.3% to 330,000 t by end-November, down from 341,300 t the previous month, according to data from Marubeni Corp, which monitors the ports of Yokohama, Nagoya, and Osaka.

Kings Aluminium and KEZAD begin aluminium facility construction

Kings Aluminium Industries and Khalifa Economic Zones Abu Dhabi (KEZAD) have commenced the construction of a AED 750 million ($204 million) aluminium manufacturing and recycling facility in KEZAD. Spanning 100,000 square meters, the plant will leverage Emirates Global Aluminium's raw materials, reducing carbon footprint and promoting the circular economy. The initiative aligns with the UAE's strategy to localise supply chains and enhance sustainability in production.

Rio Tinto unveils Nuton: Sustainable bio-heap leaching for copper production

Rio Tinto introduced Nuton, a bio-heap leaching technology developed over 30 years to meet the rising global demand for copper responsibly. Achieving recovery rates up to 85%, Nuton generates no tailings, eliminates smelting, and aims to produce high-quality copper cathode with minimal environmental impact.

Oil prices gain

Oil prices rose today, continuing the upward trend from the prior session. The increase was prompted by attacks on ships in the Red Sea by Yemen's Iran-aligned Houthi militants. These incidents disrupted maritime trade, leading companies to redirect vessels.

Brent oil futures went up by 0.18% to $78.09 per barrel. Crude oil WTI futures rose slightly by 0.04% to $72.50 per barrel, at the time of reporting.

Natural gas prices edge up

Prices of natural gas were recorded at $2.520/MMBtu, up marginally by 0.68%.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 102.47, down slightly by 0.08% against the last closing.

At the time of reporting, the rupee was recorded at INR 83.17, depreciated against the previous closing.