LME base metals prices, stocks show mixed trends

Base metals prices on the London Metal Exchange (LME) showed mixed trends, with zinc witnessing the largest increase of 1.20% and nickel witnessing largest decline of 1.94%. Meanwhile, metal stocks at LME-registered warehouses also showed mix trends. The largest outflow was seen in lead, which fell by 1.10% and significant inflow was seen in nickel, which was up by 4.53%.

COMEX market

Copper prices on COMEX were down by 2% to $8,976/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 750,000/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.

Global updates

China's manufacturing sector faces 'cruel summer'

China's manufacturing sector is experiencing a downturn, with the Caixin/S&P Global PMI falling to 49.8 in July, signalling contraction. This decline follows disappointing official PMI data and reflects weak demand and reduced new orders. The sector, hit by soft economic momentum and deflationary pressures, faces a challenging period, prompting calls for policy intervention to stabilise growth.

US manufacturing activity hits 8-month low

In July, the US Manufacturing PMI dropped to 46.8, the lowest in eight months, due to a decline in new orders. Despite this, factory production rebounded sharply in Q2. The ISM's new orders and production sub-indexes fell, while input prices and supplier delivery times have increased, reflecting ongoing challenges despite some economic stability.

LME warehousing: new developments, old challenges

The LME has included Jeddah as a delivery location for copper and zinc and is eyeing Hong Kong for expansion. However, problems persist, such as lengthy wait times at warehouses and a concentrated operator base. LME storage capacity has shrunk over the past three years, despite recent increases in warehouse numbers and metal inflows.

Escondida workers reject contract offer, strike looms

Workers at BHP's Escondida copper mine in Chile have overwhelmingly rejected a new contract offer, with 99.75% voting in favour of a strike. The union criticised the proposal for inadequate progress on worker demands, extending workdays, and cutting benefits. BHP plans to seek government mediation to avoid a strike and reach a sustainable agreement.

Oil prices slip

Oil prices fell due to weak global demand, driven by disappointing economic data from China and lower manufacturing activity. China's declining road traffic and reduced oil imports in Asia contributed to the decrease, despite rising geopolitical tensions in the Middle East.

Brent oil futures were up by 0.75% to $80.12 per barrel. Meanwhile, crude oil WTI futures were marginally up by 0.79% to $76.91 per barrel at the time of reporting.

Natural gas prices up

Prices of natural gas were recorded at $1.97/MMBtu, up by 0.36%.

Dollar index

The dollar index, which gauges value of the greenback against a basket of six different currencies, hovered at 104.27, which is down by 0.14%.

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