LME sees mixed trends in prices of non-ferrous metals

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed mixed trends. Three-month aluminium futures inched down by 0.7% to settle at $2,236/t, nickel prices dipped 0.6% to $18,014/t, copper prices fell by 0.01% to $8,109/t, zinc prices inched up by 2.9% to $2,500/t and lead prices gained marginally by 0.9% to $2,104/t. Meanwhile, metal stocks in LME-registered warehouses remained on the lower side barring lead.

COMEX market

Copper prices on the Commodity Exchange (COMEX) gained by 0.5% to reach $8,051/t from $8,007/t on the last trading day.

India's non-ferrous market

Aluminium

Aluminium ADC12 alloy ingot prices in India have experienced a slight decrease of INR 1,000/t, reaching INR 183,000/t. This drop in alloy ingot prices is attributed to weak demand and a consistent decline in prices over recent weeks, despite stable raw material costs. Limited scrap availability has helped maintain stability in raw material prices, while silicon prices have been narrowing. Meanwhile, according to SteelMint's assessment, India's aluminium scrap market has remained stable yesterday.

Copper

Domestic copper prices remained stable yesterday with buyers remaining less active. Despite relatively subdued sentiments prevailing at present.

Global updates

Nyrstar temporarily closes Tennessee zinc mines

Nyrstar, owned by Trafigura, will temporarily close two zinc mines in Tennessee at the end of November due to weak prices and inflation. This marks the third zinc operations shutdown in recent months, contributing to a reduction in the expected zinc market surplus for 2024, according to Morgan Stanley analysts. Zinc prices have declined 16% this year.

Bank of England to hold high borrowing costs amid inflation

The Bank of England is expected to maintain its 15-year high borrowing costs at 5.25% amid a battle against elevated inflation, even as the UK economy shows signs of strain. The central bank's decision comes in the wake of the European Central Bank and the U.S. Federal Reserve keeping their rates unchanged.

U.S. manufacturing contracts in Oct'23

In October, U.S. manufacturing saw a significant contraction, with the Institute for Supply Management reporting a drop in its manufacturing PMI from 49.0 in September to 46.7. This decline, likely impacted by UAW strikes against major car manufacturers, marks the 12th consecutive month of contraction, the longest stretch since the 2007-2009's Great Recession.

Canada manufacturing PMI rises slightly Oct'23

Canada Manufacturing Purchasing Managers' Index (PMI), increased to 48.6 in October from September's 47.5, marking the first rise in three months. However, the sector remains in contraction, with both output and new orders declining and input costs rising. This disappointing performance reflects weak market demand.

Amer International's Shanghai Copper Trading Arm closes order book

Amer International Group's Shanghai copper trading arm, Arc Resources, is reportedly closing its order book due to financial pressure stemming from China's troubled property sector, a significant consumer of copper. Traders have terminated many contracts and are facing underutilised capacity.

Oil prices gain

Oil prices increased today, ending a three-day downward trend. This gain was driven by a resurgence in risk appetite in the financial markets following the decision by the U.S. Federal Reserve to maintain its benchmark interest rates without any changes.

Brent oil futures went up by 0.87% to $85.37 per barrel. Crude oil WTI futures inched up by 0.93% to $81.19 per barrel, at the time of reporting.

Natural gas prices down

Prices of natural gas were recorded at $3.466/MMBtu, down by 0.8% 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 106.38, slightly down by 0.48%.

The rupee was recorded at INR 83.25 against the dollar, appreciating marginally by 0.02% against the previous closing.