LME base metals prices show negative trends; stocks witness mixed movements
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Base metals prices on the London Metal Exchange (LME) edged down, with zinc witnessing the largest decrease of 2.37%. Similarly, metal stocks at LME-registered warehouses showed a mixed trend with the highest rise in copper stock by 2.92%.
COMEX market
Copper prices on COMEX were down by 2% to $9,768/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.
India's imported aluminium scrap prices have remained volatile this week amid a marginal drop in LME aluminium prices.
Exports of automobiles from India saw a notable increase of 15.5% y-o-y during the June quarter (April-June 2024), with all sectors except three-wheelers showing growth in shipments, according to latest data from the Society of Indian Automobile Manufacturers (SIAM).
Global updates
Chinese copper smelters scaling back production
Two Chinese copper smelters, Daye Nonferrous Metals Group and Baotou Huading Copper Industry, planned significant production cuts next year due to declining profit margins from a shortage in ore concentrate. Daye aimed for a 20% reduction, while Baotou Huading planned a 40% cut, reflecting challenges in balancing smelting capacity with mine supply amid Asian expansion and market uncertainties.
Rio Tinto celebrates progress towards developing lithium mine in Serbia
Rio Tinto applauded Serbia's reinstatement of its license to develop Europe's largest lithium mine, crucial for the continent's electric vehicle industry. Despite opposition and legal hurdles, the $2.4 billion Jadar project in Western Serbia aims to meet 90% of Europe's lithium demand, subject to extensive environmental scrutiny and public consultations.
China's Zijin Mining acquires a 9.9% ownership interest in Montage Gold
Zijin Mining Group, China's largest gold producer, is acquiring a 9.9% stake in Canadian miner Montage Gold through a C$57.3 million private placement. The investment, expected to close by 12 August, aims to fund development and exploration at Montage's Kone Project in Ivory Coast, with no regulatory hurdles anticipated under Canada's Investment Canada Act.
BHP joins others hit by declining nickel prices
BHP Group's decision to suspend nickel operations in Western Australia reflects ongoing challenges in the nickel market, exacerbated by Indonesia's surging production. The move follows similar actions by other Australian miners amid a significant price decline. Despite initial optimism, the outlook remains uncertain, with oversupply and low demand constraining price recovery prospects.
Oil prices slip
China's oil sector shows weakness with falling crude imports and rising stockpiles. Refiners processed 900,000 bpd less crude than available in June, and imports dropped 2.9% in the first half of 2024, contradicting bullish demand forecasts.
Brent oil futures were down slightly by 0.16% to $83.60 per barrel. Meanwhile, crude oil WTI futures were down by 0.15% to $80.64 per barrel at the time of reporting.
Natural gas prices steady
Prices of natural gas were recorded at $2.18/MMBtu, stable.
Dollar index
The dollar index, which gauges value of the greenback against a basket of six different currencies, hovered at 103.89, slightly down by 0.08%.
The rupee was recorded at INR 83.55 against the dollar, largely stable compared to the previous closing.
