LME non-ferrous metals prices surge on improved market performance

Prices of non-ferrous metals on the London Metal Exchange (LME) followed an upward trajectory. Over a three-month period, aluminum futures increased by 1.4% to reach $2,240/t, nickel experienced a significant surge of 4.8% to reach $22,450/t, copper saw a moderate rise of 1.8% to reach $8,673/t, zinc prices gained 2.9% to reach $2,488/t, and lead prices moved up by 0.2% to $2,179/t. This positive movement in the base metal market was likely influenced by strong performances in major markets. However, LME warehouse stocks remained volatile d-o-d.

COMEX market

Copper prices on the Commodity Exchange (COMEX) witnessed an increase of 1.3% to reach $8,602/t from $8,492/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium market

Indian imported aluminium scrap market observed positive price trends, with prices increasing by up to $100/t w-o-w, driven by a rise in futures and an increased trade activity. USA-origin aluminium talk prices also surged $95/t w-o-w to $4,620 CIF Nhava Sheva. Other grades of scrap also saw moderate price increases.

Domestic aluminium scrap prices remained range-bound compared to the previous trading day. Leading market participants believe prices may see some minor changes in the near-term.

Copper market

Indian domestic copper prices showed a positive trend yesterday, with armature scrap prices rising by 0.6% and secondary wire rod increasing by 0.8% d-o-d. Furthermore, copper futures on the LME saw a notable increase of 1.62%, at the time of reporting.

Global updates

South Korea's consumer sentiment index rises in July 2023

In July 2023, South Korea's Composite Consumer Sentiment Index (CCSI) rose to 103.2, up 2.5 points from June. Consumer sentiment improved for living standards, future household income, and domestic economic conditions, while expected inflation for the upcoming year stood at 3.3%.

Australia's CPI soars 6.0% in June 2023 quarter

Australia's Consumer Price Index (CPI) increased by 0.8% in the current quarter. Over the twelve months leading to the June 2023 quarter, the CPI surged 6.0%. The notable price rises were observed in rents (+2.5%), international holiday travel and accommodation (+6.2%), other financial services (+2.5%), and new dwelling purchase by owner-occupiers (+1.0%).

Global economy shows progress amid challenges

Global economy gradually recovered from pandemic and Russia's invasion of Ukraine. Signs of progress evident, but challenges persist. Growth expected to slow to 3% this year and next, with emerging markets at 4.1%. Inflation remains a concern despite strong labour markets.

Oil prices inch down

Brent oil futures dropped 0.6% to $83.14 per barrel. Crude oil WTI futures fell marginally by 0.6% to $79.15 per barrel.

Natural gas prices dip

Prices of natural gas were recorded at $2.728/MMBtu, down 0.07% at the time of publishing this insight.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 101.25, witnessing a slight drop of 0.1%.

The rupee was recorded at 81.98 against the dollar, depreciating marginally by 0.28% against the last closing.