Non-ferrous metal prices on LME display downtrend except lead

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed downtrend d-o-d except lead. Three-month aluminium futures inched down by 0.6% to $2,232/t, nickel prices went down by 1.2% to $18,490/t, copper prices edged down by 0.6% to $7,899/t and zinc prices dipped by 0.7% to $2,476/t. Contrastingly, lead prices gained by 0.8% to $2,135/t. Meanwhile, metal stocks in LME-registered warehouses witnessed mix trends d-o-d.

COMEX market

Copper prices on the Commodity Exchange (COMEX) fell 1% to reach $7,809/t from $7,875/t on the last trading day.

India's non-ferrous market

Aluminium

In India, the aluminium scrap market maintained stability yesterday. This consistency occurred alongside a continued drop in LME prices and price reductions from significant market players. LME aluminium futures also decreased by 1.6%, reaching $2,236/t at the time of this report.

Copper

Copper prices in the domestic market remained relatively stable yesterday, with limited market activity seen at the beginning of the month. This stability followed a sudden drop in future prices to $7,906/t, marking a 0.55% decline compared to the previous day. Buyers are adopting a wait-and-see approach, anticipating further price reductions.

Zinc and Lead

The domestic zinc and lead markets in India experienced w-o-w price declines of more than 1%. These changes were primarily influenced by adjustments in HZL's prices and a slight decrease in demand. In the imported segment, zinc diecast (5%) from the Middle East was evaluated at $2,040/t, CIF Mundra as of 3 Oct'23.

Global updates

Aurubis sets $228/t copper premium for European customers in 2024

Aurubis, Europe's largest copper smelter, will charge a $228/t premium over London Metal Exchange prices for copper sold to its European customers in 2024. This rate remains unchanged from 2023, reflecting weaker demand expectations for the metal, used in industries like power and construction. Aurubis anticipates increased demand for refined copper in segments related to green energy in 2024, as well as tight supplies in Europe.

Reserve Bank of India keeps key rate at 6.50% amid inflation concerns

The Reserve Bank of India (RBI) has held its key lending rate steady at 6.50% for a fourth consecutive policy meeting. The decision aligns with RBI's focus on inflation management amid concerns about rising prices, despite annual retail inflation easing to 6.83% in August from a 15-month high of 7.44% in July. The central bank has raised rates by 250 basis points since May 2022 to control inflation and cool the economy.

U.S. job growth slows in September, unemployment rate declines

U.S. job growth in September is expected to show a moderate slowdown, while the unemployment rate is likely to decrease from a 1-1/2-year high, according to the Labour Department's upcoming employment report. Wage gains are expected to remain elevated, underscoring the economy's strength despite increasing challenges. The Federal Reserve may consider another rate hike by year-end, given the labour market's resilience and ongoing demand in the economy.

Oil prices gain

Oil prices were headed for their most significant weekly drop since March, even though they rose today. Concerns about a global economic slowdown due to a U.S. bond market sell-off and fears of a significant drop in fuel demand contributed to the downward pressure on oil prices.

Brent oil futures went up slightly by 0.13% to $84.18 per barrel. Crude oil WTI futures inched up by 0.22% to $82.49 per barrel, at the time of reporting.

Natural gas prices up

Prices of natural gas were recorded at $3.181/MMBtu, up 0.47% at the time of publishing this report.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 106.44, witnessing a slight rise of 0.10%.

The rupee was recorded at 82.95 against the dollar, remained largely stable against the previous closing.