LME base metals prices remain down, lead stocks gain over 21%

Base metals prices on the London Metal Exchange (LME) showed a downtrend with zinc witnessing the largest decrease of 1.39%. Similarly, metal stocks at LME-registered warehouses showed a positive trend except aluminium with the significant inflow seen in lead which rose by 21.27%.

Citi added substantial lead to LME warehouses in Singapore on 23 July, increasing stocks to their highest since early May. This move, part of rent deals, raised lead inventories by 40% since 4 June. Rent for the metal can earn over $23,000 daily.

COMEX market

Copper prices on COMEX fell by 1% to $9,152/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 747,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices have remained range-bound, with ex-Delhi NCR at INR 177,000/t and ex-Chennai at INR 178,000/t.

India has seen a notable decline in imported aluminium scrap prices w-o-w, attributed to a decrease in LME aluminium prices. Prices for all grades have fallen by up to 6% this week, leading to market uncertainty and a cautious approach among market participants.

In addition, the Indian market experienced reduced activity following the presentation of the interim Budget for financial year 2025 (FY'25) in Lok Sabha yesterday.

Global updates

Chasing the green nickel premium: sustainable sourcing in focus

Western nickel producers pushed for a 'green premium' by highlighting superior environmental standards, though market interest remained low. China's dominant role, especially through Indonesia, faces environmental and social issues, with transparency challenges complicating the recognition of sustainable practices.

Freeport McMoRan to invest $7.5 billion in Chilean copper mine expansion

Freeport McMoRan plans a $7.5 billion expansion of its El Abra copper mine in Chile, pending permits. The 7-8 year project aims to meet long-term copper demand, boosting annual production to 750 million pounds of copper and 9 million pounds of molybdenum.

India's business activity soars

India's business activity reached a three-month high, driven by strong demand in services and manufacturing. The composite PMI rose to 61.4, with job creation hitting an 18-year peak. Despite robust growth, rising input costs are pushing prices up, potentially impacting future interest rate decisions by the Reserve Bank of India.

Nornickel is planning a nickel plant in China for batteries

Nornickel is negotiating with Chinese firms to build a plant in China for producing nickel material from Russian semi-finished products. The project, aimed at bypassing Western sanctions, could be located in Hunan province and produce nickel sulphate for electric vehicle batteries. Nornickel plans to supply 50,000 metric tonnes of nickel annually to the plant.

Oil prices down

Oil prices dropped to a six-week low due to expectations of a ceasefire in Gaza and concerns about demand in China with U.S. diesel and gasoline futures also hitting their lowest levels since early June. The decline was influenced by advancing ceasefire negotiations and macroeconomic uncertainties in China, along with a stronger U.S. dollar.

Brent oil futures were range-bound at $81.24 per barrel. Meanwhile, crude oil WTI futures were marginally up by 0.31% to $77.20 per barrel at the time of reporting.