Non-ferrous metal prices on LME edge down

Prices of non-ferrous metals on the London Metal Exchange (LME) moved south. Three-month aluminium futures inched down by 0.7% to settle at $2,251/t, nickel prices dipped 1.9% to $18,130/t, copper prices fell by 0.3% to $8,110/t, zinc prices edged down by 1.5% to $2,429/t and lead prices dropped 1.7% to $2,085/t. Meanwhile, metal stocks in LME-registered warehouses showed mixed trends.

COMEX market

Copper prices on the Commodity Exchange (COMEX) fell by 0.3% to reach $8,007/t from $8,030/t on the last trading day.

India's non-ferrous market

Aluminium

The Indian imported aluminium scrap market has recently witnessed a price surge, driven by rising futures contracts and industry players' price adjustments. However, domestic demand has remained modest due to the upcoming Diwali holidays. Primary aluminium producers in India have raised prices, while limited demand for silicon 553 has pressured prices downward, mainly due to inventory buildup. Market players anticipate deals to continue post-Diwali if futures prices stabilise.

Meanwhile, the Indian aluminium scrap market held steady yesterday compared to the previous day's closing. Market participants are grappling with liquidity problems, and a lack of enthusiasm from buyers has led to a stagnant market situation.

Copper

Copper prices in the domestic market remained unchanged yesterday, reflecting a lack of enthusiasm from buyers. While there is a prevailing sense of subdued market sentiment, the stability in prices at this moment is likely driven by month-end market activities and may not necessarily signify a long-term trend.

Global updates

India's manufacturing growth slows in Oct'23

India's manufacturing growth decelerated for the second consecutive month in October, reaching an eight-month low of 55.5 on the Manufacturing Purchasing Managers' Index, down from 57.5 in September. Despite the slowdown, the index has remained above the 50-mark for 28 consecutive months, signifying expansion.

Asian manufacturing slows, exporters face uncertainty

In October, Asia's manufacturing sector faced increasing challenges, notably with China's factory activity declining, which has created uncertainty for the region's major exporters. Purchasing managers' indexes (PMIs) for China, Japan, and South Korea all showed shrinking activity, reflecting weaker global demand and higher prices. Japan and South Korea, heavily reliant on Chinese demand, also experienced manufacturing contraction.

Chinese aluminum smelters reduce output

Chinese aluminum smelters are planning to reduce production in the coming months in Yunnan province due to reduced hydropower availability during the dry season. Four smelters will cut production by 9% to 40% of capacity, with others likely to follow. This production cut may result in a supply loss of nearly 100,000 t per month in China, prompting an expected increase in aluminum imports to offset the reduction in supply.

Japan's factory activity contracts

Japan's factory activity continued to contract for the fifth consecutive month in October, with the final au Jibun Bank Japan manufacturing purchasing managers' index (PMI) at 48.7. Weak sales at home and abroad, declining new export orders, and rising prices were factors contributing to the contraction.

Oil prices gain

Oil prices in early Asian trading experienced a slight increase today. This uptick was observed in anticipation of significant central bank meetings this week, notably the U.S. Federal Reserve meeting. Additionally, the market is closely monitored the ongoing developments in the Israel-Hamas conflict.

Brent oil futures went up by 0.32% to $85.29 per barrel. Crude oil WTI futures inched up by 0.20% to $81.18 per barrel, at the time of reporting.

Natural gas prices up

Prices of natural gas were recorded at $3.591/MMBtu, up by 0.45% 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 106.77, slightly up by 0.10%.

The rupee was recorded at INR 83.27 against the dollar, depreciating marginally by 0.01% against the previous closing.