- Nickel prices on LME gain 1.64%, zinc stocks fall 4.5%
- Potential US tariffs may disrupt global copper production
Base metals prices on the London Metal Exchange (LME) remained range-bound d-o-d, with nickel experiencing the highest gain of 1.64%. Meanwhile, inventories at LME-registered warehouses saw mixed trends, with zinc recording the sharpest change, a decrease of 4.50% d-o-d.
COMEX market
Copper prices on the COMEX stood at $10,096/tonne (t), steady compared to the previous close.
Indian market overview
In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 798,000/t ex-Delhi, down by INR 2,000/t d-o-d. Aluminium Tense scrap prices remained stable d-o-d, with ex-Delhi at INR 183,000/t and ex-Chennai at INR 185,000/t.
Key updates
Japanese manufacturers wary amid US tariff impact
Japanese manufacturers showed improved sentiment in April, with the Reuters Tankan index at +9, up from -1 in March. However, the outlook for the next three months is cautious due to US President Trump’s new tariffs. Export-heavy sectors such as automotive and machinery are particularly concerned, citing reduced orders and uncertainty, alongside weak demand from China.
Potential US copper tariffs may cause production disruptions globally
The US imports 50% of its copper, with Chile (70%), Canada (17%), and Peru (7%) supplying 94% of these imports. Trump’s Section 232 probe, aimed at limiting foreign influence, may culminate in tariffs on these countries, among others. Such measures could disrupt global copper production, raising costs and affecting industries such as construction and electronics.
Oil prices fall d-o-d
Emerging market crude exporters faced financial strain as oil prices dipped, impacting revenues and budgets. Angola dealt with a margin call, while Nigeria reconsidered its budget plans. Gulf nations may cope better due to reserves and low debt. Importers may see limited gains amid broader economic uncertainties and trade tensions.
Brent crude futures were recorded at $64.62/barrel today. Meanwhile, WTI crude oil futures decreased by 0.08% d-o-d to $61.28/barrel.
Natural gas prices drop
Natural gas stood at $3.30/metric million British thermal unit (MMBtu), down by 0.78% d-o-d.
Dollar index inches down
The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 99.44, down by 0.49% d-o-d at the time of reporting. The Indian rupee was recorded at INR 85.60 d-o-d against the dollar.
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