LME base metals prices witness positive trends; copper stocks gain over 2%
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Base metals prices on the London Metal Exchange (LME) witnessed an uptrend. Similarly, metal stocks at LME-registered warehouses saw mixed movements with the highest inflow seen in copper.
COMEX market
Copper prices on the Commodity Exchange (COMEX) gain 1.2% to $9,943/t against the previous closing.
India's non-ferrous market
As of yesterday, BigMint's assessment of domestic copper armature scrap prices stood at INR 780,500/t exy-Delhi. Secondary rod prices were heard at INR 830,000/t. Cu mixed motors from Pakistan were heard trading at $1,250/t. Meanwhile, domestic aluminium, zinc and lead prices stood stable.
Global updates
Japanese manufacturing grows, services contract
Japan's manufacturing sector expanded for a second consecutive month in June, though at a slower pace as weakening orders and rising costs posed challenges. The au Jibun Bank flash PMI stood at 50.1, indicating marginal growth, while service sector activity contracted for the first time in nearly two years, with constraints on output due to labour shortages.
U.S. economic activity steady despite weak housing
U.S. initial jobless claims fell slightly to 238,000, suggesting steady economic activity amid weak housing starts, which dropped to the lowest level since June 2020 at 1.277 million units. Sluggish homebuilding reflects ongoing challenges from high mortgage rates impacting market momentum and builder confidence.
Vale SA invests $3.3 billion to boost copper production
Vale SA plans to invest up to $3.3 billion in enhancing mining operations in Brazil and Canada, aiming to increase copper production capacity to 500,000 t by 2028. The initiative includes improvements at Salobo and Sossego mines. Vale anticipates early gains with $800 million allocated initially, expecting 5% higher copper and 10% more nickel output by 2026.
China's copper scrap imports increase amid tight ore supply
China has significantly increased copper scrap imports, receiving nearly 1 mnt in the first five months of 2024, aiming to supplement tight ore supplies. Despite record copper futures, May saw a 12% dip in scrap imports from April's peak, signalling potential moderation in demand for recycled metal.
Oil prices largely stable
Crude oil futures showed minimal movement on Friday but were poised for a second consecutive weekly increase, buoyed by indications of strengthening demand and declining oil and fuel reserves in the U.S., the largest global oil consumer.
Brent oil futures were down slightly by 0.09% to $85.63 per barrel. Crude oil WTI futures edged down by 0.07% to $81.23 per barrel at the time of reporting.
Natural gas prices down
Prices of natural gas were recorded at $2.714/MMBtu, down 0.99%.
Dollar index
The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 105.55, slightly down by 0.04%.
The rupee was recorded at INR 83.6 against the dollar, depreciating marginally against the previous closing.
