- India factory growth hits five-year low
- China discovers copper-gold deposit in Anhui
LME base metals were not traded on 31 August due to the Summer Bank Holiday in the UK. Therefore, the latest available LME 3M prices are from 28 August. Aluminium stood at $3,242/t, nickel at $16,861/t, copper at $14,294/t, zinc at $3,883/t and lead at $1,906/t.
LME inventories were also unchanged. Aluminium stocks stood at 246,825 t, nickel at 268,314 t, copper at 235,575 t, zinc at 97,875 t and lead at 408,500 t.
Domestic market overview
India’s non-ferrous scrap market witnessed mixed trends on 31 August. Aluminium tense scrap (loose), ex-Delhi, rose by INR 2,000/t (0.80%) d-o-d to INR 253,000/t. Meanwhile, ex-Chennai prices remained unchanged at INR 247,000/t. Regional supply and availability factors may have supported Delhi prices. However, weaker manufacturing activity and monsoon-related disruptions kept the broader market cautious.
Meanwhile, copper armature scrap (Cu 99%) remained unchanged at INR 1,305,000/t. Muted domestic demand limited price movement. Tight global copper scrap supply provided some support, while unchanged LME copper prices offered little fresh direction.
Other updates
Oil prices rise as US-Iran conflict revives supply risks
Brent crude rose to around $91/bbl as renewed US-Iran strikes revived concerns over Middle East supply disruptions. The risk premium strengthened as efforts to reopen the Strait of Hormuz remained inconclusive. Only five commodity vessels crossed the strait on Monday, versus a 10-day average of around 14, and none were liquid tankers. Meanwhile, the new U.S.-Venezuela oil agreement could provide a longer-term counterweight, with plans to develop 17 fields and raise output to 1.5 million bpd. However, that supply will take time to materialise.
India’s factory growth hits five-year low
India’s manufacturing PMI fell to 52.8 in August from 53.5 in July. This marked the weakest factory expansion in five years. New orders grew at their slowest pace since August 2021, while output also moderated. Factory employment fell for the first time in 30 months. Consequently, weaker manufacturing activity could reduce near-term aluminium and copper consumption. The impact could be felt across auto, engineering, construction and consumer goods.
China discovers major copper-gold deposit in Anhui
China has identified the Chating porphyry copper-gold deposit in Anhui. The deposit contains estimated resources of about 500,000 tonnes of copper and more than 20 tonnes of gold. It is the largest deposit of its type identified in the middle and lower Yangtze River region. China plans further exploration to strengthen domestic mineral supply. However, development will take time. Therefore, the near-term impact on copper prices should remain limited.
Hindustan Copper, Lohum join hands to restart Gujarat plant
Hindustan Copper Ltd has partnered with Lohum Materials to restart, upgrade and operate its Gujarat Copper Plant in Jhagadia. The facility has capacity of around 50,000 tonnes/year. Lohum will operate the plant for 20 years, with a possible five-year extension. The project aims to expand domestic copper production and reduce import reliance. Furthermore, the revival could support India’s critical minerals ecosystem and meet demand from power, infrastructure, electronics, renewable energy and electric mobility sectors.
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