- China’s control of nickel supply strengthens
- LME aluminium monopoly impacting prices
Base metals prices on the London Metal Exchange (LME) showed negative trends, with zinc recording the highest drop of 2.66% d-o-d. Meanwhile, inventories at LME-registered warehouses witnessed mixed movements, with zinc up by 4.82% d-o-d.
COMEX market update
Copper prices on the COMEX stood at $9,977/tonne (t), decreasing by 1% to the previous close.
Indian market overview
In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 785,000/t ex-Delhi. Aluminium Tense scrap prices remained stable d-o-d, with ex-Delhi at INR 179,000/t and ex-Chennai at INR 180,000/t.
Global updates
LME aluminium monopoly?
Up to 90% of the available London Metal Exchange (LME) aluminium inventories, valued at $505 million, are controlled by one party, according to recent LME data. The exchange, monitoring the market’s tightness, shows a significant reduction in stocks since May 2024. This concentration of control is impacting aluminium prices, with cash premiums reflecting potential shortages.
China’s grip on global nickel supply tightens
Anglo American’s sale of its Brazilian nickel business to China’s MMG Ltd has possibly strengthened the Asian giant’s control over global nickel. The deal, involving two mines and plants with 40,000 tonnes (t) of annual capacity, highlights China’s dominance in the sector. With production shifts, Western countries may struggle to reduce reliance on Chinese nickel supply, especially with falling LME prices.
Oil prices rise
Brent crude futures were recorded at $75.12/barrel today. Meanwhile, WTI crude oil futures increased by 0.57% d-o-d to $71.10/barrel.
Natural gas prices dip
Natural gas stood at $3.97/metric million British thermal unit (MMBtu), down by 0.43% 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 106.51, down by 0.01% d-o-d at the time of reporting. The Indian rupee was recorded at INR 86.96 against the dollar.
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