- Indonesia revises mining law for small businesses
- BHP profit falls 23% y-o-y, demand recovery expected
Base metals prices on the London Metal Exchange (LME) showed positive trends, with zinc recording a gain of 1.06% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed negative movements, with zinc down by 1.00% d-o-d.
COMEX market update
Copper prices on the COMEX stood at $10,068/tonne (t), increasing by 10% compared to the previous close.
Indian market overview
In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 790,000/t ex-Delhi. Aluminium Tense scrap prices remained stable d-o-d, with ex-Delhi at INR 177,000/t and ex-Chennai at INR 178,000/t.
Global updates
Indonesia revises mining law to support domestic processing
Indonesia’s parliament passed a bill revising the mining law to encourage domestic mineral processing and improve access for small businesses and religious groups. The amendment – a response to a 2021 court order to address unconstitutional mining articles – prioritizes concessions for companies building processing facilities and promoting job creation and resource security.
BHP sees demand recovery for steel, copper amid profit slump
BHP’s profit fell 23% y-o-y to $5.08 billion during July-December 2024, its lowest in six years, driven by a 26% decline in iron ore earnings. Cyclones disrupted shipments, lowering output expectations. However, BHP remains optimistic, expecting that central bank rate cuts will revive steel and copper demand, positively impacting production in the near term.
Oil prices gain
Brent crude oil prices rose today following a drone attack on a Russian pipeline that reduced Kazakhstan’s oil flows. However, gains were limited by expectations of higher supply from OPEC+ and Russia in the future, as well as ongoing uncertainties about demand, particularly from China, due to weak economic data.
Brent crude futures were recorded at $75.39/barrel today. However, WTI crude oil futures decreased by 1.03% d-o-d to $71.47/barrel.
Natural gas falls
Natural gas stood at $3.57/metric million British thermal unit (MMBtu), down by 4.16% d-o-d.
Dollar index inches up
The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 106.88, up by 0.24% d-o-d at the time of reporting. The Indian rupee was recorded at INR 86.95 against the dollar.
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