Base metals prices on the London Metal Exchange (LME) showed negative trends except lead. Copper witnessed the largest decline of 1.78%. Meanwhile, metal stocks at LME-registered warehouse showed a mixed movement. Additionally, a significant inflow was seen in copper, which was up by 16.70%.
Copper prices are falling due to a sharp increase in inventories across Asian warehouses, reaching levels not seen since mid-2018. This supply glut, coupled with high Chinese exports and economic slowdown concerns, have pushed prices down from their mid-May peak of $10,889/t to around $8,928/t. Rising global inventories and reduced speculative positions further contributed to the downward pressure on prices.
COMEX market
Copper prices on COMEX fell by 2% to $8,690/t against the previous closing.
India market overview
In India’s non-ferrous markets, BigMint’s assessment of domestic copper armature scrap stood at INR 722,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices have remained range-bound, with ex-Delhi NCR at INR 174,000/t and ex-Chennai at INR 175,000/t.
Global updates
China’s imports up, exports slow raising economic concerns
China’s exports grew by 7.0% in July, slower than June’s 8.6% increase and below expectations, while imports rose by 7.2%, driven by pre-emptive chip purchases amid U.S. tech curbs. The mixed data highlighted ongoing challenges for China’s manufacturing sector and economic recovery, with experts predicting further pressure on both imports and exports in the coming months.
Impala platinum flags $1 billion impairments amid metal price decline
Impala Platinum has announced it will report a basic loss of up to 17.8 billion rand ($972.39 million) due to $1 billion in impairments from falling metal prices. For the year ending 30 June, earnings dropped significantly due to a 34% decrease in platinum group metal prices. Headline earnings are expected to rise to 90%, lower than last year.
Glencore halts cobalt stockpiling amid market surplus
Glencore has ceased stockpiling cobalt, according to CEO Gary Nagle. The move follows a market surplus driven by increased production in the Democratic Republic of Congo, leading to cobalt prices dropping to $12 per lb., the lowest since 2016. Glencore has predicted that the market will remain in surplus for the next 18 to 24 months.
Oil prices up
Oil prices have risen for the third straight session, driven by a significant draw in U.S. crude stockpiles and record-high production. Ongoing concerns over potential Middle East supply disruptions, along with Libya’s force majeure declaration on the Sharara oilfield due to protests, have further supported the rebound in prices from recent lows.
Brent oil futures remained range-bound to $78.21 per barrel. Meanwhile, crude oil WTI futures fell marginally range-bound to $75.21 per barrel at the time of reporting.
Natural gas prices down
Prices of natural gas were recorded at $2.09/MMBtu, down by 0.76%.
Dollar index
The dollar index, which gauges value of the greenback against a basket of six different currencies, hovered at 103.03, which was down by 0.16%.
The rupee was recorded at INR 83.95 against the dollar, largely stable compared to the previous closing.
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