LME non-ferrous metals prices decline, except nickel

Non-ferrous metals prices on the London Metal Exchange (LME) witnessed a downtrend, except nickel. Three-month aluminium futures declined 2.3% to reach $2,203/t, while copper dropped 0.21% to $8,473/t, zinc fell 0.6% to $2,395/t, lead prices inched down by 0.1% to $2,096/t. Contrastingly, nickel prices on the LME rose marginally by 0.1% to $21,084/t.

Meanwhile, the stocks at LME warehouses continued to remain volatile. Notably, zinc stocks grew significantly by 15.3% to 80,375 t from 69,725 t.

COMEX market

Copper prices on the Commodity Exchange (COMEX) witnessed a decrease of 1% to reach $8,403/t from $8,447/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium market

The Indian market for imported aluminum scrap witnessed a positive trend across all grades, with prices increasing by up to $60/t w-o-w. Global aluminum markets have been experiencing volatility and fluctuations, leading to a bid-offer disparity of around $40-50/t. Challenges in the northern region, such as limited logistics and operational activities, have caused disruptions in the entire supply chain. The recent rise in aluminum scrap prices can be attributed to slight demand, and market experts expect them to remain stable at current levels.

Copper market

Domestic copper prices in India remained stable yesterday, but LME copper futures and MCX experienced declines. Slow demand continues due to rainfall. However, trading of copper from the UAE and the US indicated moderate activity in the market.

Global updates

US retail sales show resilience, IP declines in Jun'23

US retail sales rose 0.2% in June, with mixed performance in different sectors. Consumers showed resilience in spending, but growth momentum slowed. The report suggests the economy is on a solid path, supporting expectations that the Federal Reserve will raise interest rates this month. Despite multiple rate hikes since March 2022, spending has remained strong.

On the other hand, in June, US industrial production declined 0.5% for a second consecutive month but advanced 0.7% at an annual rate for second quarter (Q2). Manufacturing output decreased 0.3% in June but rose 1.5% in Q2. Most major market groups saw declines in June, except for defence and space equipment. Mining and utilities also fell in June. Capacity utilisation in June was 78.9%, below the long-run average.

Chinese pre-owned home prices decline

Chinese pre-owned home prices declined despite policy support. First-tier cities saw a 0.7% m-o-m fall in June (accelerating from May's 0.4% decline), while second and third-tier cities experienced a 0.4% drop.

Constellium sells German extrusion plants

Constellium SE will sell three soft alloy extrusion facilities in Germany to Vaessen Aluminium for EUR48.8 million ($54.67 million). The transaction is expected to close in the second half (H2) of 2023, pending regulatory approval. Vaessen Aluminium is part of a family-owned industrial group based in Belgium with diverse operations in aluminium billets, profiles, lighting, ceiling, and wall cladding.

Oil prices down

Global oil prices opened higher in Asian trade but later edged down. Concerns over the US demand weighed against China's economic growth support, tighter Russian supply, and decreasing US inventories.

Brent oil futures inched down by 0.03% to $79.60 per barrel. Crude oil WTI futures fell 0.2% to $75.60 per barrel.

Natural gas prices inch down

Prices of natural gas were recorded at $2.626/MMBtu, dropping 0.11% at the time of publishing this insight.

Dollar index

The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 100.15, witnessing a marginal rise of 0.21%.

The rupee was recorded at 82.11 against the dollar, depreciating by 0.07% against the last closing.