LME base metals prices edge down, stocks remain positive

Base metals prices on the London Metal Exchange (LME) witnessed downtrend with aluminium witnessing the largest decrease of 2.21%. Similarly, metal stocks at LME-registered warehouses showed a positive trend except aluminium with the highest inflow seen in zinc which rose by 2.29%.

COMEX market

Copper prices on COMEX fell by 1% to $9,218/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 757,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices have remained range-bound, with ex-Delhi NCR at INR 178,000/t and ex-Chennai at INR 179,000/t.

Global updates

Western miners want higher metal prices to compete with Chinese rivals

Western miners, facing competitive pressures from Chinese rivals flooding markets with cheap metals like cobalt, are advocating for higher prices to sustain operations. Mines like Jervois Global's Idaho site remain shuttered due to low cobalt prices, prompting calls for a two-tier pricing system favouring sustainably produced metals.

Zambia aims to increase copper output to 1 mnt by 2027

Zambia plans to boost copper production to 1 million tonnes (mnt) annually by 2027, a 40% increase from current levels. As Africa's second-largest copper producer, Zambia aims to capitalise on anticipated supply gaps driven by increased demand from electric vehicles and renewable energy sectors. The country targets further growth to 3 mnt per year by 2031 to meet global market needs amid the energy transition.

Geopolitical tensions threaten market stability once again

Geopolitical tensions are unsettling global markets, triggering flight from risk assets like Taiwan stocks to safe havens such as gold, which hit record highs. Concerns over U.S. election volatility and geopolitical shifts in Europe amplify investor caution, impacting asset allocation strategies and prompting heightened inflation and semiconductor market worries.

China's rate reductions leave iron ore, copper unmoved: Russell

China's recent interest rate cuts, the first in 11 months, have failed to boost iron ore and copper markets. The People's Bank of China reduced the seven-day reverse repo rate to 1.7% from 1.8%, but iron ore futures on the Singapore Exchange dipped 0.4%, and Dalian contracts fell 0.3%. London-traded copper futures dropped 1.0%, and Shanghai copper contracts declined 0.86%. This muted response reflects a lack of confidence in China's economic policies and concerns over potential U.S. trade policy changes.

Oil prices down

Oil prices hit their lowest level in over a month on Monday due to rising stockpiles and weak demand. Despite President Biden ending his re-election campaign and endorsing VP Harris, market focus remained on supply concerns and soft demand. Analysts expect the oil market to balance by the fourth quarter and a surplus by next year, potentially lowering brent prices. Meanwhile, geopolitical tensions in the Middle East and China's economic measures did not significantly impact oil prices.