LME base metals prices show negative trends, stocks witness mixed movement

Base metals prices on the London Metal Exchange (LME) showed negative trends except zinc. Notably, nickel saw the largest decrease of 1.82%. Meanwhile, metal stocks at LME-registered warehouse showed a mixed movement, with largest outflow witnessed in lead by 1.63%.

COMEX market

Copper prices on COMEX have decreased by 1% to $9,196/t against the previous closing.

India market overview

Aluminium

In India's non-ferrous markets, BigMint reported that aluminium tense scrap prices rose by INR 1,000/t, with prices in the Delhi NCR region at INR 176,000/t and in Chennai at INR 177,000/t.

Copper

Domestic copper armature prices were assessed at INR 740,000/t exy-Delhi, reflecting an increase of 1.5% w-o-w. Copper futures on the London Metal Exchange (LME) recently hit a 4-month low, falling to $8,750/t.

BigMint's assessment of USA-origin talk scrap was at $4,900/t, a 4.5% w-o-w rise, Middle East-origin largely from the UAE prices were recorded at $4,600/t, up by 2.9% w-o-w.

Copper motor mix scrap prices are being offered at $1,190-1,200/t by sellers based in the EU and the US. However, these prices seem to be higher than the bids currently being placed. Although BigMint noted traded levels concluding at $1,160-1,170/t.

Major market updates

Rio Tinto, Teck address rail disruption

Rio Tinto and Teck Resources face production setbacks due to a major Canadian rail strike. Rio Tinto's iron ore and aluminium operations could see substantial delays, while Teck's copper and zinc production may also be impacted. Both companies are implementing contingency plans to mitigate these disruptions and maintain supply chain stability.

Hindalco to invest $10 billion in expansion

Hindalco Industries plans to invest $10 billion to boost its aluminium and copper productions, including Novelis' Bay Minnette project in the U.S. The expansion also includes a new copper facility in Gujarat. This move aims to enhance production capabilities and support electric vehicle cell components.

Codelco faces $8 million fine for tailings dam violations

Chile's Codelco may incur an $8 million fine over tailings dam management issues at its Ministro Hales division. Violations include lacking a contingency plan and improper tailings deposit. This could impact operations at the Ministro Hales, Chuquicamata, and Radomiro Tomic mines, though Codelco is working on compliance and remediation plans to address the charges.

US business equipment borrowings rise 13% in July

U.S. companies raised equipment financing by 13% in July y-o-y, according to the Equipment Leasing and Finance Association (ELFA). New loans and leases surged 11% from June, reflecting industry optimism. Credit approvals increased to 75.8%, and the Equipment Leasing & Finance Foundation's confidence index rose to 58.4, its highest in over two years.

Oil prices down

Oil prices are set to end the week lower due to concerns about U.S. demand following downward revisions to employment data, which raised fears of a potential recession. Additionally, easing supply worries from renewed ceasefire talks in Gaza have also weighed on prices. Both Brent and WTI crude futures have dropped significantly this week amid these factors.

Brent oil futures were recorded at $77.34/barrel, up by 0.16%, while WTI crude oil futures rose by 0.15% to $73.12/barrel at the time of reporting.

Natural gas prices stable

Natural gas prices were recorded at $2.05/MMBtu, stable.

Dollar index

The dollar index, which measures value of the greenback against a basket of six major currencies, hovered at 101.19, down by 0.20%. The Indian rupee was recorded at INR 83.86 against the dollar, compared to the previous close.