LME base metals prices gain d-o-d; Grasberg copper mine operations suspended

• Ukraine turns to Indian diesel after refinery destruction
• Oil prices rise on limited OPEC+ hike, Russian supply risks

Base metals prices on the London Metal Exchange (LME) saw positive trends d-o-d, with aluminium rising by 0.65% to $2,618/tonne (t). Meanwhile, inventories at LME-registered warehouses saw negative trends d-o-d, with lead recording the steepest fall of 3.21%.

Domestic market overview

In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap prices as stable d-o-d at INR 800,000/t ex-Delhi. Aluminium Tense scrap prices stood at INR 195,000/t ex-Delhi and INR 198,000/t ex-Chennai, down by INR 1,000/t d-o-d.

Other market updates

Grasberg copper mine operations halt after material flow incident

Freeport-McMoRan temporarily halted copper mining operations at the Grasberg Block Cave mine in Papua, Indonesia, after a large flow of wet material blocked access routes on 8 September. Seven workers were trapped, though their location is known, and they are believed to be safe. All other personnel are confirmed safe. Operations were suspended, to prioritise the safe evacuation of workers while crews work to clear the blocked areas.

Ukraine turns to Indian diesel after refinery loss

Ukraine has started importing diesel of Indian origin after Russian strikes destroyed its Kremenchuk refinery in June, halting domestic production. Indian diesel, routed via traders through Turkey and Romania, now holds nearly a 10% market share and is used to meet defence needs. India, which refines Russian crude, has emerged as an unexpected supplier as Ukraine shifts from its former reliance on Belarus, Russia, and Europe.

Oil prices rise on limited OPEC+ output hike, Russian supply risks

Oil prices edged higher after OPEC+ announced a modest production increase of 137,000 barrels per day (bpd) for October, far below earlier monthly hikes and expectations. Brent rose 0.53% to $66.37 a barrel, while WTI gained 0.51% to $62.58. The restrained output hike, combined with fears of tighter supply from possible new US-EU sanctions on Russia following intensified attacks in Ukraine, supported prices. Despite OPEC+ easing cuts earlier this year, oversupply concerns remain. Expectations of a US Fed rate cut next week also lifted sentiment by potentially boosting economic growth and oil demand.