LME base metals prices edge down; copper stocks gain over 5%

Base metals prices on the London Metal Exchange (LME) edged downward except lead, with copper witnessing the steepest decline of 1.20%. Similarly, metal stocks at LME-registered warehouses showed a mixed trend with highest increase in copper stock by 5.78%.

COMEX market

Copper prices on COMEX dipped 2% to $9,900/t against the previous closing.

India market

In India's non-ferrous market, BigMint's assessment of domestic copper armature scrap prices stood at INR 788,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices have remained range-bound, with ex-Delhi NCR at INR 181,000/t and ex-Chennai at INR 182,000/t.

Global updates

The U.S. tax break now extends to Chilean lithium

Chilean lithium for electric vehicle batteries now qualifies for U.S. tax benefits under the Inflation Reduction Act, leveraging the U.S.-Chile free trade agreement. This supports export growth of raw lithium and related materials, bolstering Chile's lithium industry amid rising global demand from the electric vehicle market.

US gets tougher on Chinese steel, aluminium imports

Under President Joe Biden, the US has adjusted tariffs on steel and aluminum, replacing some with quotas while maintaining others from the Trump era. This approach aims to manage trade tensions while safeguarding domestic industries crucial to the US economy.

Codelco faces challenges in increasing copper production from a 25-year low

Codelco, Chile's top copper producer, struggles to recover from a 25-year low in copper output amid operational delays, accidents, and management challenges. Despite aims to slightly exceed 2023 levels in the second half of 2024, analysts remain skeptical about reversing the downward production trend amidst global copper demand pressures.

China's JCHX to invest $300 million in Zambia's Lubambe copper mine

China's JCHX Mining plans to invest $300 million in Zambia's Lubambe copper mines, extending its life and improving operations. JCHX acquired an 80% stake from EMR Capital, while Zambia's ZCCM-IH holds the remaining 20%. The investment includes sinking a new shaft to access deeper copper deposits.

Oil prices gain

Oil prices rose Friday due to easing U.S. inflation, with brent crude peaking. Lower U.S. consumer prices raised hopes for Federal Reserve rate cuts, boosting fuel demand. Strong summer fuel consumption in the U.S. supported prices, but weaker demand from China could weigh on the market.

Brent oil futures were up slightly by 1.09% to $86.33 per barrel. Meanwhile, crude oil WTI futures were up by 1.32% to $83.71 per barrel at the time of reporting.

Natural gas prices up

Prices of natural gas were recorded at $2.27/MMBtu, up 0.49%.

Dollar index

The dollar index, which gauges value of the greenback against a basket of six different currencies, hovered at 104.34, slightly down by 0.09%.

The rupee was recorded at INR 83.53 against the dollar, largely stable compared to the previous closing.