Non-ferrous metal prices on LME witness a drop

Prices of non-ferrous metals on the London Metal Exchange (LME) displayed downtrend. Three-month aluminium futures inched down by 0.3% to $2,150/t, nickel dipped by 0.2% to $20,795/t, copper moved down slightly by 0.05% to $8,355/t, zinc prices fell by 0.5% to $2,382/t and lead prices edged down by 1% to $2,161/t. Similarly, metal stocks in LME registered warehouses witnessed a dip except copper.

COMEX market

Copper prices on the Commodity Exchange (COMEX) witnessed a decrease of 0.3% to reach $8,315/t from $8,337/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium

Domestic aluminium scrap rates in India remained steady on the last trading day amidst future market fluctuations. Recent market activity included a few imported scrap transactions.

Copper

Indian copper prices remained range-bound as of 25 Aug'23. However, demand has improved in recent weeks and is expected to stay good; yet, buyers are currently unwilling to purchase at high prices, forcing sellers to cut their offers.

Global updates

China's July industrial profits decline

China's industrial profits dropped by 6.7% y-o-y in July, marking a seven-month decline due to weak demand amid a stumbling post-pandemic recovery. Accumulated profits for the first seven months fell by 15.5%, and major banks have lowered growth forecasts, highlighting concerns over property, consumer spending, and credit growth.

Copper stabilizes on China's Yuan support

Copper dipped 0.05% to 731.4 amid increased support for China's yuan and seasonal consumption strength. China's September-October copper demand months are anticipated. Shanghai Futures Exchange saw a 3.5% rise in copper inventories. Despite a 7% production rise, the refined copper market shifted to a 213,000-ton surplus in H1 2023 from a deficit last year, per ICSG. Chile's output fell 4% due to operational challenges and water supply issues. Market's open interest rose by 5.75%, with support at 728.4 and resistance at 735.8.

Rio Tinto, First Quantum partner for Peru's La Granja

Rio Tinto and First Quantum Minerals have formed a joint venture to develop Peru's La Granja project, a substantial undeveloped copper deposit. First Quantum acquired a 55% stake for $105 million and will invest up to $546 million to advance the project towards development.

Oil prices up

Brent oil futures were up by 0.07% to $84.54 per barrel. Crude oil WTI futures moved up slightly by 0.14% to $79.94 per barrel.

Natural gas prices gain

Prices of natural gas were recorded at $2.624/MMBtu, up 3.31% 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 104.02, witnessing a slight drop by 0.06%.

The rupee was recorded at 82.6 against the dollar, appreciating marginally by 0.07% against the last closing.