- Illegal mining overshadows Peru’s copper growth
- Asian stocks up; trade uncertainty weighs
Base metals prices on the London Metal Exchange (LME) remained range-bound d-o-d, with nickel dropping by 0.64% to $15,438/tonne (t). Meanwhile, inventories at LME-registered warehouses dropped d-o-d, with copper recording the steepest fall of 3.10%.
COMEX market
Copper prices on the COMEX stood at $10,671/t, up by 2.6% compared to the previous close.
US tariff hike to prompt trade shifts
The recent hike in US aluminium tariffs is expected to prompt Asian producers to redirect shipments towards Europe, potentially reshaping global trade flows. Additionally, the tariff gap between imported aluminium products and auto parts may offer a competitive edge to Asian auto-part manufacturers, who could benefit from lower relative costs and increased export opportunities.
Countries in Asia, such as Japan, South Korea, Vietnam, Thailand, and Indonesia, with established auto-parts manufacturing bases, are well-positioned to absorb aluminium volumes redirected from the US market. This is because tariffs on imported auto parts are lower than those on raw aluminium and steel, giving Asian auto-part manufacturers a cost advantage and potential export growth opportunity.
Indian market overview
In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 788,000/t ex-Delhi. Aluminium Tense scrap prices remained steady d-o-d, with ex-Delhi at INR 196,000/t and ex-Chennai at INR 197,000/t.
India’s leading primary aluminium producer is reportedly procuring used beverage can (UBC) scrap at lower prices from smaller regional markets, with recent purchases at INR 173,000/t DAP. For material sourced from the north, including Delhi, bids stood at INR 164,000/t. However, many local suppliers preferred to sell within their local markets at around INR 163,000/t, as doing so offered better margins compared to supplying directly to the plant.
Market updates
Peru projects modest copper output rise in 2025
Peru expects copper production to rise slightly to 2.8 mnt in 2025, up from 2.7 million in 2024. However, the growth in formal output is being overshadowed by a surge in illegal gold and copper mining, driven by high gold prices. Regions such as Pataz and Apurimac remain hotspots, prompting continued military crackdowns and shifts in investment strategies across the mining sector.
Asian stocks rise amid trade uncertainty
Asian stocks gained on Wednesday, boosted by tech shares, while the U.S. dollar dipped as new tariffs on steel and aluminium took effect. Trade uncertainty persisted ahead of a key deadline for US partners to submit proposals, with investors hoping a call between Xi Jinping and Donald Trump could ease tensions.
Oil prices down d-o-d
Brent crude futures were recorded at $65.43/barrel today. Meanwhile, WTI crude oil futures decreased by 0.33% d-o-d to $63.20/barrel.
Natural gas prices drop
Natural gas stood at $3.70/metric million British thermal unit (MMBtu), down by 0.51% 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 99.04, down by 0.13% d-o-d at the time of reporting. The Indian rupee was recorded at INR 85.94 against the dollar.
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