LME non-ferrous metals prices edge up even as stocks decline
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Non-ferrous metals prices on the London Metal Exchange (LME) witnessed a bullish trend. Three-month aluminium futures climbed 3.1% to reach $2,236/t, while nickel rose 4.7% to $21,685/t. Copper rose 2.1% to $8,499 /t, zinc prices inched up by 2.9% to $2,425/t, and lead prices increased by 1.6% to $2,085/t.
Amid the uptrend in non-ferrous metals prices, base metal stocks at LME warehouses declined. Particularly, copper stocks continued in a downward trajectory, dropping by 4.6% to 54,450 t from the previous level of 57,075 t.
COMEX market
Meanwhile, copper prices on the Commodity Exchange (COMEX) witnessed an increase of 2% to reach $8,469/t from $8,271/t in the last trading day.
India: Non-ferrous scrap markets
Aluminium
The domestic market for aluminium alloy ingots saw prices declining due to sluggish demand, leading to decreased transaction volumes. SteelMint's assessment shows that prices of ADC12 aluminium alloy ingots touched a six-month low. Producers in north India maintained their production levels at approximately 60-70% of capacity utilisation to cope with ongoing market volatility.
Auto major Maruti Suzuki reportedly lowered its monthly settlement prices for ADC12 alloy ingots by INR 2,900/t for July.
Domestic scrap prices witnessed a slight uptick, with tight-to-moderate supply of aluminium tense scrap amid firm demand. The weekly spread between tense and ADC12 remained relatively stable at INR 35,000/t.
Copper
The copper market in India exhibited a range-bound trend, with prices increase marginally w-o-w. Prices for copper armature scrap remained firm. Additionally, secondary rod prices increased by INR 6,000-7,000/t w-o-w.
Global updates
SHFE eyes warehousing expansion
The Shanghai Futures Exchange (SHFE) has revealed its intention to expand its commodities warehousing network beyond China by exploring regulations and systems in foreign markets. Currently, SHFE operates 216 domestic facilities within China for futures contracts, covering a range of commodities including metals and rubber.
US consumer prices rise in June
In June, the U.S. Consumer Price Index (CPI-U) increased by 0.2%, with the all-items index rising by 3% over the past year. The main contributors to the increase were shelter and motor vehicle insurance, while food at home remained unchanged and food away from home rose by 0.4%. The energy index increased by 0.6%.
Peru extends emergency for mining corridor
Peru's Prime Minister has extended the state of emergency for 30 days along major roadways, including a crucial mining corridor, in anticipation of upcoming protests. The corridor plays a critical role in transporting copper from important mines like Las Bambas owned by China's MMG Ltd.
Oil prices rise
Oil prices rose today following positive US inflation and economic data, which raised expectations of fewer interest rate hikes by the Federal Reserve. Additionally, Chinese trade data revealed that oil imports in June were the second-highest on record, further supporting the upward momentum in oil prices.
Brent oil futures moved up by 0.25% to $79.49 per barrel. Crude oil WTI futures rose 0.18% to $75.89 per barrel.
Natural gas prices inch up
Prices of natural gas were recorded at $2.657/MMBtu, up by 0.95% 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 100.52.
The dollar had a challenging session overnight, marking its steepest decline in five months. Against the euro, the dollar lost over 1%, while its losses were even more significant against other currencies.
The rupee was recorded at 82.11 against the dollar, appreciating by 0.19% against the last closing.
