Wedoany.com Report on Feb 3rd, Base metals prices on the London Metal Exchange (LME) fell broadly, reflecting rising risk aversion in the commodity market. Nickel prices dropped by 4.51%, closing at $17,540 per tonne; aluminum prices fell by 3.37% to $3,110 per tonne. Copper prices declined by 1.82% to $13,370 per tonne; zinc and lead prices fell by 2.02% and 2.83% respectively, settling at $3,343 and $1,957 per tonne.
LME warehouse inventories showed a divergent trend, with uneven supply conditions. Aluminum stocks decreased by 0.40% to 495,725 tonnes, copper inventories fell by 0.62% to 174,975 tonnes, and lead stocks dropped by 1.01% to 205,575 tonnes. Nickel inventories saw a slight decline of 0.06% to 286,284 tonnes, while zinc stocks increased marginally by 0.23% to 110,000 tonnes.
In India's non-ferrous scrap market, prices for aluminum Tense scrap rose in major regions. The delivered price assessment in Delhi increased by 1,000 Indian Rupees/tonne to 212,000 INR/tonne, while the Chennai delivered price rose by 2,000 INR/tonne to 215,000 INR/tonne. The price for copper armature scrap delivered in Delhi also saw a small increase of 2,750 INR/tonne to 1,216,000 INR/tonne.
Capstone Copper has resumed operations at the Mantoverde copper-gold mine in northern Chile, with production returning to 50%-75% of normal capacity. This restart follows a court ruling allowing re-entry to a desalination plant, which had previously restricted production. The partial capacity recovery highlights the operational challenges faced by Chilean copper producers, involving labor disputes and water resource constraints.
Global oil prices fell nearly 5%, marking their largest single-day drop in over six months, as signs of easing U.S.-Iran tensions reduced the geopolitical risk premium. Brent crude dropped to around $65.9 per barrel, and West Texas Intermediate (WTI) fell to around $61.9 per barrel. A stronger U.S. dollar and a broader sell-off in commodities exacerbated the decline, with OPEC+'s decision to maintain March production levels adding downward pressure.
