LME base metals prices show downtrends, stocks remain varied

Base metals prices on the London Metal Exchange (LME) showed downtrends except nickel which was up by 1.48%. Meanwhile, metal stocks at LME-registered warehouses also showed mixed trends with the largest outflow seen in lead which fell by 1.58%.

COMEX market

Copper prices on COMEX were stable at $8,976/t against the previous closing.

India market overview

In India's non-ferrous market, BigMint's assessment of domestic copper armature scrap prices stood at INR 741,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices have remained range-bound, with ex-Delhi NCR at INR 175,000/t and ex-Chennai at INR 175,500/t.

Global updates

Rio Tinto evaluates big copper buys amid heated market

Rio Tinto CEO indicated that the company may consider significant acquisitions if they offer exceptional value, despite a heated copper market. The focus is on copper growth, with the company expecting a 3% annual increase from 2024, driven by projects like Oyu Tolgoi and partnerships in Chile and Peru. Stausholm remains cautious of high market prices.

Saudi Arabia eyes lithium investments in Chile

Saudi Arabia's Manara Minerals, a joint venture between Ma'aden and the Public Investment Fund, is exploring investment opportunities in Chile's lithium sector. Minister expressed interest in Chile's lithium assets and praised the Chilean government's commitment. Saudi Arabia aims to secure lithium supplies to support its goal of becoming a battery and EV manufacturing hub.

Impact on Fortescue's mining operations

The significant drop in Fortescue's share price following Capital Group's $1.2 billion stake sale could lead to increased scrutiny from investors and potential difficulties in raising capital. The market reaction reflects concerns over the company's revised green hydrogen ambitions, possibly affecting its long-term strategic plans and operational investments.

Oil prices slip

Oil prices dropped due to concerns over weakening demand from China and expectations that OPEC+ will keep current supply plans. The reduced geopolitical risk and potential decline in U.S. crude stocks, along with anticipated interest rate cuts, also contributed to the decrease.

Brent oil futures were up by 1.32% to $79.67 per barrel. Meanwhile, crude oil WTI futures were marginally up by 1.61% to $75.93 per barrel at the time of reporting.

Natural gas prices up

Prices of natural gas were recorded at $2.13/MMBtu, up by 0.28%.

Dollar index

The dollar index, which gauges value of the greenback against a basket of six different currencies, hovered at 104.15, which is down by 0.16%.

The rupee was recorded at INR 83.73 against the dollar, largely stable compared to the previous closing.