LME base metals prices slip, stocks show mixed trends
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Base metals prices on the London Metal Exchange (LME) witnessed downtrend with aluminium witnessing the largest decrease of 1.43%. Similarly, metal stocks at LME-registered warehouses showed a mixed trend with the highest inflow seen in copper which rose by 1.76%.
Zinc prices fell amid concerns over China's weak economy and lack of stimulus. Despite increased production, supply issues persist due to halted operations at MMG Ltd.
Aluminium prices fell, pressured by rising inventories and fluctuating market dynamics. SHFE inventories increased, and China's imports and production surged significantly. Premiums for Japanese buyers rose, reflecting tighter supplies. The market showed long liquidation, with support at lower levels and resistance at higher levels.
COMEX market
Copper prices on COMEX fell by 1% to $9,306/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 762,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices have remained range-bound, with ex-Delhi NCR at INR 179,000/t and ex-Chennai at INR 180,000/t.
Global updates
China unexpectedly cuts key interest rates
China unexpectedly cut key short-term policy rates and benchmark lending rates to stimulate its economy amidst challenges like economic slowdown, property crises, and trade tensions. The People's Bank of China reduced the seven-day reverse repo rate to 1.7% and the one-year loan prime rate to 3.35%, aiming to support growth amid global economic uncertainties and internal challenges.
South32's stock falls sharply
South32 Ltd. saw its shares plummet by up to 12.9% in Sydney after reporting an $818 million impairment charge. The Australian miner disclosed a pre-tax writedown of $554 million on its Worsley alumina asset and $264 million on its Cerro Matoso nickel project in Colombia, citing environmental challenges and competitive pressures in the alumina sector.
Oil prices up
Oil prices rose as investors anticipate a potential rate cut by the Federal Reserve in September. Brent crude and U.S. West Texas Intermediate crude both saw gains. Concerns about China's slower economic growth and its effect on oil demand persist.
Brent oil futures were up slightly by 0.52% to $83.06 per barrel. Meanwhile, crude oil WTI futures were up by 0.60% to $80.61 per barrel at the time of reporting.
Natural gas prices up
Prices of natural gas were recorded at $2.15/MMBtu, up by 1.46%.
Dollar index
The dollar index, which gauges value of the greenback against a basket of six different currencies, hovered at 103.99, slightly down by 0.10%.
The rupee was recorded at INR 83.66 against the dollar, largely stable compared to the previous closing.
