Base metals prices on LME move upward barring nickel

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed uptrend barring nickel. 3-month aluminium futures inched up by 0.1% to settle at $2,233/tonne (t), copper prices rose by 1.3% to $8,266/t, zinc prices edged up by 3.7% to $2,649/t and lead prices moved up by 0.9% to $2,221/t. Conversely, nickel prices dipped by 0.2% to $17,450/t. However, metal stocks at LME-registered warehouses witnessed varied trends.

Zinc prices surged 3.7%, buoyed by a sharp decline in LME-certified warehouse stocks, down over 50% since September. A 30% increase in cancelled orders hinted at more zinc leaving the LME system. Positive economic indicators in China, including a 7.6% y-o-y rise in retail sales and a 4.6% y-o-y growth in industrial production, influenced market sentiment.

COMEX market

Copper prices on the Commodity Exchange (COMEX) inched up by 0.8% to reach $8,161/t from $8,095/t on the last trading day.

India's non-ferrous market

The non-ferrous metal market in India stayed within a limited range on the last trading day, largely influenced by the concluded Diwali holidays. Market participants are optimistic about potential price increases in the coming days. However, trading activities remained subdued during this period.

Global updates

India's October trade witnesses surge

India's goods exports rose 6.3% in October, the highest in almost a year, while imports reached a record $65 billion, surging 12.3%. Consequently, the trade deficit hit a new high of $31.4 billion, surpassing the previous record in July 2022.

Japanese exports expand for second month

For the second consecutive month in October, Japanese exports expanded, albeit at a significantly reduced rate, primarily attributed to the decline in shipments of chips and steel to China. Ministry of Finance data revealed a 1.6% year-on-year increase, surpassing the 1.2% forecast but decelerating from September's 4.3% growth, reflecting the impact of weakened external demand on the trade-dependent economy.

Vedanta dispatches first low-carbon aluminium

Vedanta Aluminium has shipped its initial batch of low-carbon Restora Billets to Global Aluminium in Telangana, marking India's first eco-friendly aluminium. Restora, produced with renewable energy, maintains a greenhouse gas intensity within the global low-carbon threshold. Restora Ultra, utilising recycled aluminium, achieves a near-zero carbon footprint.

EU sets targets for critical minerals independence

The European Union has set targets for lithium and nickel production, reducing reliance on external sources, particularly China. The plan aims to extract 10%, recycle 25%, and process 40% of critical minerals by 2030. Aluminium and synthetic graphite are added to the list, responding to China's graphite export controls. The EU limits third-country contributions to 65% for each material. The law establishes timelines for permits and supply chain assessments, emphasising the importance of ensuring environmental and social standards.

US retail sales drop, signals economic slowdown

U.S. retail sales experienced their first decline in seven months in October, attributed to reduced motor vehicle purchases and spending on hobbies. This suggests a slowdown in demand at the beginning of the fourth quarter, reinforcing the belief that the Federal Reserve has concluded its interest rate hikes. Data also revealed the largest drop in producer prices in three-and-a-half years, driven by cheaper gasoline.

Despite a cooling labour market, economists do not see signs of a recession. The moderate decline in October's sales, though less than anticipated, supports expectations for a prolonged pause in Fed rate hikes, while the possibility of rate cuts remains distant.

Oil prices dip

Today, the decline in oil prices continued, following the previous session's losses. This was driven by indications of increased supply from the United States, coupled with concerns about sluggish energy demand in China.

Brent oil futures went down slightly by 0.57% to $80.72 per barrel. Crude oil WTI futures slipped by 0.67% to $76.15 per barrel, at the time of reporting.

Natural gas prices down

Prices of natural gas were recorded at $3.160/MMBtu, down by 0.94% 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 104.49, slightly up by 0.09% against the last closing.

The rupee was recorded at INR 83.24, depreciated marginally against the previous closing.