Base metals prices on the London Metal Exchange (LME) exhibited negative trends except Aluminium, with lead witnessing the largest decline of 2.76%. However, metal stocks at LME-registered warehouses showed a mixed trend with the largest decline in lead by 2.07% and a significant increase seen in zinc by 9.86%.
Aluminium prices edged up due to increased production in China and tightening supply in Asia. Strong growth in domestic output and rising premiums in Japan supported the price increase. The market also saw reduced open interest, indicating short covering. Zinc prices fell due to rising energy costs and reduced inventories. Weak U.S. job data and a global selloff impacted sentiment, while expectations of Fed rate cuts and lower production added to market volatility.
COMEX market update
Copper prices on the COMEX market remained stable, reaching $8,976/t compared to the previous close.
India market overview
In India’s non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 723,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices remained stable, with ex-Delhi NCR prices at INR 174,000/t and ex-Chennai prices at INR 175,000/t.
Imported aluminium scrap prices in India have remained range-bound w-o-w despite the rebound in LME prices. According to BigMint’s assessment, tense scrap from the Middle East, particularly the UAE, saw an increase of $30/t, settling at $1,730/t. Zorba 95/5 from the UK remained range-bound at $1,950/t CFR west coast, India.
Global market updates
India to fund critical minerals extraction efforts
India plans to invest nearly $50 million to support research and development in critical minerals extraction. This funding aims to enhance extraction and beneficiation techniques, addressing the country’s reliance on imported lithium and rare earths. Despite previous setbacks, the initiative seeks to boost domestic production through collaborations between research institutes and mining companies.
BHP removes striking workers at Escondida mine affect production
BHP has begun removing striking workers at Chile’s Escondida copper mine after negotiations have failed. This move could significantly affect production at the world’s largest copper mine, which produced 1.1 million tonnes of copper last year. While the company has a contingency plan to maintain operations, the strike poses a risk to output levels.
Vedanta approves 2.6% Hindustan Zinc stake sale worth INR 6,450 Crore
Vedanta Ltd’s board has authorised a 2.6% offer for sale (OFS) of its stake in Hindustan Zinc, totaling up to 110 million shares valued at around INR 6,450 crore. This move, announced in a stock exchange statement, reflects Vedanta’s ongoing strategy to manage its investments. As of June, Vedanta owned 64.92% of Hindustan Zinc, while the central government held 29.54%. On Tuesday, Hindustan Zinc’s shares closed at INR 586.35 on the BSE.
Oil prices up
Oil prices increased due to a significant drop in U.S. crude and gasoline inventories, signaling strong demand. Additionally, concerns about potential escalation in the Israel-Gaza conflict and its impact on global oil supplies contributed to the price rise. Brent oil futures were recorded at $81.09 per barrel, up by 0.50%, while WTI crude oil futures increased by 0.55% to $78.78 per barrel at the time of reporting.
Natural gas prices up
Natural gas prices were recorded at $2.165 per MMBtu, up by 0.79%.
Dollar index
The dollar index, which measures value of the greenback against a basket of six major currencies, hovered at 102.43, up by 0.05%. The Indian rupee was recorded at INR 83.94 against the dollar, compared to the previous close.
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