Metals ease on tech sell-off and Fed rate worries; oil swings and a firmer rupee
Most base metals slipped at the start of the week as a renewed sell-off in technology shares and fresh signals of tighter US interest rates hurt demand for risky assets. LME copper fell about 0.5% on Monday, and copper scrap rates in India eased about 1%. Oil fell sharply on Monday on hopes of US-Iran peace talks, then bounced on Tuesday after fresh US strikes, while the rupee firmed slightly against the dollar.
Copper slips again, but China's stocks stay very low
LME copper fell about 1.6% on Friday and about 0.5% on Monday as traders closed out buying positions, and it is now roughly 3% below its level in late September. LME copper stocks have kept rising to about 2,94,000 tonnes, up from about 2,73,000 tonnes in late October. In China, however, copper stocks in warehouses fell by about 25,000 tonnes in a week to around 80,000 tonnes, about 1,10,000 tonnes below a year ago, and spot premiums in Shanghai and Guangdong hit record highs.
For your business: Copper and cable scrap rates in India eased about 1% in the latest session. Buyers may get slightly better offers, but tight physical supply in China could limit how far prices fall.
Aluminium dips after a week of gains
LME aluminium fell about 0.6% on Monday after rising about 2% over the previous week. It remains below its levels in September. LME aluminium stocks are near 2,31,000 tonnes, slightly lower than in late October.
For your business: Aluminium ingot-grade and utensil scrap rates in India were unchanged. With LME moving in a narrow range, both buyers and sellers can expect steady trade in the near term.
Tin bounces after a heavy quarter; lead and zinc ease
Tin rose about 1.5% on Monday after falling about 2.5% on Friday, and it is still about 10% lower over the quarter, the weakest of the main LME metals, as the tech sell-off hits demand for solder used in electronics. Lead fell about 1% and zinc about 0.5% on Monday, though zinc is still up nearly 4% from late October. Nickel was nearly flat on Monday after a 2% drop on Friday.
For your business: Zinc, lead and brass scrap rates in India were steady. Stainless steel scrap was almost unchanged, but nickel stays volatile, so check rates before fixing large deals.
Rupee firms for a second day on foreign inflows
The rupee rose 13 paise to settle near ₹94.71 per dollar on Tuesday, helped by foreign buying of Indian shares and a strong rally in the stock market. Foreign investors were net buyers of Indian shares for a second straight day on Monday. Rising oil prices on Tuesday limited the gains, and the rupee is still near its weakest levels of the year.
For your business: A slightly firmer rupee makes imported scrap and metal a little cheaper in rupee terms. Importers may still want to watch oil and the dollar before fixing payments.
Ferrous scrap steady in Delhi and Mandi Gobindgarh
Rates for HMS 1 & 2, CR/HR coil scrap and cast iron scrap were unchanged in the latest sessions in north India. Indian mills continue to use more domestic scrap and sponge iron, keeping demand for imported scrap quiet.
For your business: Sellers of melting scrap can expect stable demand for now. Lower diesel costs, if oil eases again, could help on freight.
Oil whipsaws on Iran news; Fed sounds hawkish
Oil fell nearly 11% on Monday on hopes of US-Iran peace talks, then rose on Tuesday after reports of US strikes on Iranian targets, with Brent near $106 a barrel. US Federal Reserve officials again signalled that rates may need to rise, which has weighed on metals. Markets are also waiting for the US midterm election results this week.
For your business: Big swings in oil feed into freight and smelting costs and the rupee. Higher US rates usually support the dollar and weigh on metal prices.
What to watch next
- US midterm election results and their effect on the dollar
- Any US-Iran peace talks or further strikes, and the effect on oil
- US Federal Reserve signals on interest rates
- Copper stocks in China and LME warehouses
- Tech share sell-off and its effect on tin and copper demand
Prices now
LME prices are shown with a 2-day delay. Live LME and India rates are free for registered members.
This update is general market information, not investment or trading advice. Prices are indicative.
