Base metal prices and stocks on LME display contrasting trends

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed mixed trends. 3-month aluminium futures inched down by 0.9% to settle at $2,242/tonne (t), nickel prices fell by 1.6% to $17,813/t, copper prices edged up by 0.06% to $8,147/t, zinc prices moved down by 0.3% to $2,602/t and lead prices remained unchanged at $2,190/t. Meanwhile, metal stocks at LME-registered warehouses remained on the lower side barring nickel and lead maintaining stability.

COMEX market

Copper prices on the Commodity Exchange (COMEX) inched up by 0.3% to reach $8,007/t from $7,985/t on the last trading day.

India's non-ferrous market

Aluminium scrap prices in India have remained stable within a specific range yesterday, attributed to decreased market activity with participants acquiring material as per immediate requirements.

Copper prices within the domestic market inched lower, reflecting subdued buyer activity. As the holiday season approaches, a subdued market sentiment has kept prices relatively stable. Nevertheless, sources anticipate a potential upward trend in prices post-Diwali.

Zinc and lead prices in India experienced a w-o-w increase, driven mainly by HZL's upward price adjustment of up to 4%. However, the market anticipates ongoing limited transactions due to subdued demand leading up to Diwali.

Global updates

Russia: Ozerny mine fire spurs zinc market

The fire at Russia's Ozerny mine has been extinguished, causing a spike in the zinc market. London Metal Exchange prices surged to a 5-week high of $2,631/t, but have since eased to $2,595/t. The market awaits updates on the mine's status, crucial for zinc supply amid recent global mine closures. The blaze raises concerns about potential delays in Ozerny's production ramp-up, impacting the zinc market further.

Smelter treatment charges have fallen, reflecting tightening concentrates supply. The cumulative loss of zinc production has led to a 17% rally in LME 3-month metal prices from the May low, with future recovery contingent on Ozerny's swift resumption.

India: Mines secretary urges HCL for increased copper production

Mines Secretary, urged Hindustan Copper Limited (HCL) to enhance copper ore and metal-in-concentrate production during his visit to the company's Kolkata office. Rao assured government support and encouraged HCL to strive for a prosperous future. HCL is the sole copper ore miner and integrated refined copper producer in India.

Peru: Central Bank cuts interest rate for economic recovery

Peru's central bank lowered its benchmark interest rate by 25 basis points to 7%, marking the third consecutive cut as part of efforts to stimulate economic recovery from recession. The decision, driven by a decline in consumer price inflation. Peru, the world's No. 2 copper producer, faced a technical recession due to El Nino, lower private investment, and ongoing social conflicts. The government aims to boost mining sector investments with a package of measures.

Zambia: Resumption of copper transport in DRC eases strike impact

Trucks carrying thousands of tonnes of copper in the Democratic Republic of Congo have resumed travel toward the Zambia border after a wildcat strike. About 2,700 trucks, holding around 89,000 t of copper, were stuck in Kolwezi due to driver demands for a $700 risk allowance. The sudden release may worsen border bottlenecks.

China: Passenger vehicle sales climb 3% in Jan-Oct'23

China's total retail sales of passenger vehicles rose 3% y-o-y to 17.26 million units in January-October, according to the China Passenger Car Association. October saw sales of 2.03 million passenger cars, up 10% y-o-y. New-energy vehicle (NEV) retail sales increased 3% m-o-m and 39% y-o-y to 765,000 units in October.

South Africa: Manufacturing decline continues

South Africa's manufacturing production in September 2023 dropped by 4.3% y-o-y, with notable declines in food and beverages and motor vehicles, parts, accessories, and transport equipment. Seasonally adjusted, there was a 0.5% m-o-m decrease in September. In Q3 2023, manufacturing fell by 1.2%, with eight of ten divisions reporting negative growth.

During the period from April to June 2023, there were notable fluctuations in the production of various minerals. Copper production exhibited a substantial growth of 16.3%, making a modest 0.1% point contribution to the overall change.

Oil prices stable

Brent oil futures went up slightly by 0.4% to $80.35 per barrel. Crude oil WTI futures inched up by 0.3% to $76.00 per barrel, at the time of reporting.

Natural gas prices dip

Prices of natural gas were recorded at $3.013/MMBtu, down by 0.92% at the time of publishing this report.

Dollar index

The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 105.91, largely stable against the last closing.

The rupee was recorded at INR 83.28 against the dollar, depreciated marginally against the previous closing.