LME base metals prices fall; stocks witness mixed trends

Base metals prices on the London Metal Exchange (LME) edged down except lead, with zinc witnessing the largest decrease of 1.32%. Similarly, metal stocks at LME-registered warehouses showed a mixed trend with the highest rise in copper stock by 2.14%.

COMEX market

Copper prices on COMEX were down by 1% to $9,680/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 770,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices have remained range-bound, with ex-Delhi NCR at INR 180,000/t and ex-Chennai at INR 181,000/t.

Spot prices of aluminium ADC12 alloy ingots (non-OEM) in Delhi NCR and Chennai remained range-bound w-o-w, with just a marginal drop seen, as per BigMint's latest assessment. In the Delhi-NCR region, ADC12 spot prices were assessed at INR 212,000/t ex-Delhi.

India's top automobile manufacturer has set ADC12 August settlement prices at INR 222,000/t, reflecting a modest reduction of INR 1,000/t from the previous month's INR 223,000/t

Global updates

Argentina's lithium carbonate production capacity triples

Argentina's lithium carbonate production capacity surged threefold in two years to 136,500 tonnes (t), driven by new projects like the Centenario Ratones plant in Salta. The country aims to bolster its position in the "lithium triangle" alongside Chile and Bolivia, crucial for electric vehicle batteries, with plans for additional production increases this year.

China's industrial support programmes lack transparency: WTO

The WTO highlighted a lack of transparency in China's industrial support for key sectors like EVs, aluminium, and steel, preventing a clear understanding of financial aid. The U.S. and other Western nations criticised China's "predatory" industrial policies. China defended its compliance with WTO rules and market principles during its trade policy review.

US proposes tougher trade rules targeting China's chip industry

The Biden administration is considering stringent trade restrictions, potentially including the Foreign Direct Product Rule (FDPR), to curb China's access to advanced semiconductor technology from companies like Tokyo Electron and ASML. This move aims to bolster leverage with allies while facing resistance from US companies advocating for a softer approach.

Oil prices up

Oil prices rose Thursday, driven by a larger-than-expected drop in U.S. crude inventories, indicating strong demand. Brent and WTI futures saw gains as hopes of interest rate cuts in the U.S. and Europe boosted market sentiments. Additionally, a weaker dollar made oil cheaper for buyers using other currencies, further supporting prices.

Brent oil futures were up slightly by 0.45% to $85.46 per barrel. Meanwhile, crude oil WTI futures were up by 0.71% to $83.44 per barrel at the time of reporting.

Natural gas prices down

Prices of natural gas were recorded at $2.03/MMBtu, down by 0.15%.

Dollar index

The dollar index, which gauges value of the greenback against a basket of six different currencies, hovered at 103.48, slightly up by 0.05%. The rupee was recorded at INR 83.63 against the dollar, largely stable compared to the previous closing.