LME base metals prices show positive trend; stocks edge lower barring nickel

Base metals prices on the London Metal Exchange (LME) showed positive trends, with nickel witnessing the largest increase of 3.32%. Meanwhile, metal stocks at LME-registered warehouses showed negative trends except nickel. The largest outflow was seen in lead, which fell by 1.26%.

COMEX market

Copper prices on COMEX were up 2% at $9,174/t against the previous closing.

India market overview

In India's non-ferrous markets, BigMint's assessment of domestic copper armature scrap prices stood at INR 746,000/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 176,000/t.

Spot prices of aluminium ADC12 alloy ingots (non-OEM) in Delhi NCR and Chennai fell w-o-w, as per BigMint's latest assessment. In the Delhi-NCR region. ADC12 spot prices were assessed at INR 209,000/t ex-Delhi.

Global updates

China's manufacturing slump deepens

China's manufacturing sector hit a five-month low in July, with the PMI falling to 49.4 due to weak new orders and declining prices. Factory gate prices are at a 13-month low, and employment remains weak. Exports have not bolstered recovery amid adverse weather. Policymakers are considering stimulus, but analysts doubt its immediate impact on consumption and economic growth.

India's manufacturing sector grows in July

India's manufacturing PMI held at 58.1 in July, reflecting strong growth. Domestic and export demand fuelled this expansion, though rising costs pushed client prices up sharply. Persistent inflation may influence future Reserve Bank policy.

Albemarle cuts costs amid falling lithium prices

Albemarle, a leading lithium producer, announced significant cost cuts due to plummeting lithium prices and a second-quarter loss. The company plans further reductions and pauses construction in Australia. Despite a net loss of $188.2 million, Albemarle maintains its full-year profit outlook and intends to preserve its dividend.

Solvay to boost Europe's rare earths supply

Belgian chemical firm Solvay plans to reduce Europe's dependence on China by supplying rare earth metals for permanent magnets from its refurbished plant in La Rochelle, France, set to start in early 2025. The company aims to fulfill 30% of Europe's permanent magnet needs by 2030, supporting the EU's goal for greater self-sufficiency in critical materials.

Oil prices up

Oil prices rose due to concerns about escalating conflict in the Middle East. The recent killing of a Hamas leader in Iran and heightened tensions involving Iran and Israel have raised fears of potential disruptions to oil supplies from the region. Additionally, a weaker US dollar and reduced US crude oil stockpiles contributed to the price increase. However, uncertainty about Chinese demand for oil continues to limit price gains.

Brent oil futures were up by 0.74% to $81.44 per barrel. Meanwhile, crude oil WTI futures were marginally up by 0.89% to $78.60 per barrel at the time of reporting.

Natural gas prices up

Prices of natural gas were recorded at $2.06/MMBtu, up by 1.23%.

Dollar index

The dollar index, which gauges value of the greenback against a basket of six different currencies, hovered at 104.15, which is up by 0.05%.

The rupee was recorded at INR 83.72 against the dollar, largely stable compared to the previous closing.