Base metals prices on LME dip barring lead; Zinc inventories witness 96% surge

Prices of non-ferrous metals on the London Metal Exchange (LME) dipped by up to 2.8% barring lead. 3-month aluminium futures inched down by 0.8% to settle at $2,215/tonne (t), nickel prices fell by 2.5% to $17,020/t, copper prices edged down by 0.5% to $8,220/t and zinc prices dipped significantly by 2.8% to $2,576/t. Conversely, lead prices increased by 2.7% to $2,283/t. However, metal stocks at LME-registered warehouses witnessed varied trends.

Notably, LME approved zinc inventories have nearly doubled, reaching 133,200 t, a 96% increase, following a significant influx in Singapore and Malaysia. After a 56% decline since late August, the rebound is attributed to a surplus in the global zinc market, totalling 489,000 t in the first eight months of the year, as per the International Lead and Zinc Study Group.

COMEX market

Copper prices on the Commodity Exchange (COMEX) dropped by 0.3% to reach $8,139/t from $8,161/t on the last trading day.

India's non-ferrous market

Limited market participation and price decreases from key players have maintained stability in India's aluminium scrap market as of 16 November 2023.

Copper prices domestically increased by 0.5% yesterday, aligning with LME futures. Despite post-festive price hikes, there is currently limited demand for finished products, resulting in decreased trade activities.

Zinc and lead prices in India remained within a certain range. HZL's pricing adjustments remained generally steady, with a slight uptick in zinc prices. However, transactions were limited post-Diwali due to subdued demand.

Global updates

U.S. import prices drop, labour market shows signs of cooling

U.S. import prices recorded a larger-than-expected 0.8% drop in October, the sharpest decline since March, indicating a retreat in inflation. Over the past 12 months, import prices fell by 2.0%, marking the ninth consecutive monthly decrease. This, coupled with subdued consumer and producer prices, support expectations of the Federal Reserve refraining from further interest rate hikes.

Weekly jobless claims in the U.S. rose to a three-month high, reaching 231,000, signalling a gradual labour market cooling and aligning with the Federal Reserve's anti-inflation efforts. The data, influenced by seasonal factors and pandemic-related distortions, suggested modest labour market cooling, supporting expectations that the Fed's tightening cycle is complete.

China's home prices decline in Oct'23

China's new home prices declined for the fourth consecutive month, the most since the peak of the Covid-19 pandemic last year. In October, prices dropped 0.3% m-o-m, following a 0.2% dip in September, indicating a broader weakening in the real estate sector that could impact the country's overall recovery.

Malaysia's Q3 economy beats forecasts

Malaysia's economy exceeded expectations, growing 3.3% y-o-y in Q3, surpassing analyst forecasts of 3%. The rebound from a near two-year low in Q2 was attributed to robust domestic demand, which is expected to continue offsetting export slowdowns, according to the central bank, Bank Negara Malaysia.

Vedanta's subsidiary ventures into Saudi copper market with VCI company

Vedanta's subsidiary, Malco Energy Ltd, has established a new unit, Vedanta Copper International VCI Company Limited, in Saudi Arabia, investing 100,000 Saudi riyals (Rs 22.19 lakh). The subsidiary aims to explore copper business opportunities in new geographies, aligning with Vedanta's planned demerger of key businesses for enhanced shareholder value, as per secondary sources.

Oil prices steady

Oil prices were poised for a fourth consecutive week of decline, holding steady in early Asian trade. This followed a 5% drop to a four-month low on Thursday, driven by concerns about global demand.

Brent oil futures went up slightly by 0.08% to $77.48 per barrel. Crude oil WTI futures edged up by 0.1% to $73.00 per barrel, at the time of reporting.

Natural gas prices gain

Prices of natural gas were recorded at $3.094/MMBtu, up by 1.05% 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 104.39, slightly up by 0.04% against the last closing.

The rupee was recorded at INR 83.27, depreciated marginally against the previous closing.