LME non-ferrous metals prices edge down, barring nickel

Non-ferrous metals prices on the London Metal Exchange (LME) witnessed downtrend on the last trading day. Three-month aluminium futures inched up 0.1% to $2,276/t, while nickel rose 1.6% to $21,630/t. Copper fell 0.2% to $8,673/t, zinc prices inched down by 1.6% to $2,439/t, and lead prices decreased by 0.2% to $2,122/t.

Amid the uptrend in non-ferrous metals prices, major base metals stocks at LME warehouses declined, copper stocks rose 5.4% to 57,175 t.

India: Non-ferrous scrap markets

Aluminium

India's domestic aluminium scrap prices remained unmoved d-o-d on the last trading day amid steady LME futures at $2,280/t. Market participants have chosen a wait-and-watch strategy to get clarity on the market direction.

Copper

Domestic copper prices increased by up to 1.2% d-o-d on the last day. LME copper futures rose by $300-330/t w-o-w to $8,706/t, supporting domestic prices. In the imported market, 100 tonnes (t) of copper motor (mix) were traded at $1,130/t CFR west coast. However, offers were at $1,060-1,080/t.

Global update

In Q2 2023, the Chinese economy grew by 6.3% y-o-y, surpassing Q1's 4.5% growth but falling short of market expectations of 7.3%. The figures were influenced by a low base comparison from last year's strict lockdowns. The economy expanded by 5.5% in H1, and China's GDP growth target for this year is around 5%, after a 3% growth in 2022. Beijing is cautious about launching major stimulus due to high local government debt.

In June, China's economic indicators showed a mixed picture. Retail sales growth slowed down, while industrial output continued its 14th consecutive month of growth. The urban jobless rate remained stable at 5.2%, but youth unemployment reached a new record high of 21.3%.

Oil prices fell

Brent oil futures moved down by 2.31% to $79.12 per barrel. Crude oil WTI futures fell 2.20% to $74.71 per barrel.

Natural gas prices inch up

Prices of natural gas were recorded at $2.556/MMBtu, up by 0.67% 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 99.94.

The rupee was recorded at 82.18 against the dollar, largely firm against the last closing.