LME base metals prices witness contrasting trends

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed mixed trends. 3-month aluminium futures inched down by 0.4% to settle at $2,227/tonne (t), nickel prices dipped 0.2% to $17,979/t, copper prices gained by 0.4% to $8,143/t, zinc prices inched down by 0.9% to $2,478/t and lead prices gained marginally by 0.9% to $2,123/t. Meanwhile, metal stocks in LME-registered warehouses remained on the lower side barring lead.

As of yesterday, copper prices remained steady despite weak Chinese manufacturing data, with concerns about the country's manufacturing sector. Copper on the LME was up 0.1%. Zinc spiked 7% due to the temporary closure of U.S. zinc mines by Nyrstar. LME aluminium eased, while nickel and tin fell, and lead climbed. A firmer dollar also weighed on the market.

COMEX market

Copper prices on the Commodity Exchange (COMEX) gained by 0.3% to reach $8,073/t from $8,051/t on the last trading day.

India's non-ferrous market

The prices of scrap aluminum in India saw a slight increase yesterday, but transactions remained slow due to weak demand. Buyers were cautious as Diwali approached.

Meanwhile, domestic copper prices were on the higher side primarily attributed to sellers raising their offers at the start of the month. However, the transaction remained on the lower side.

Zinc and lead prices in India experienced a slight w-o-w increase. Nevertheless, the market is expected to witness limited transactions due to weak demand persisting until Diwali. In Delhi, re-melted lead ingot witnessed a minor price increase attributed to sellers raising their offers at the beginning of the month.

Global updates

India's services sector growth slows in Oct'23

In October, India's services sector experienced a slowdown in growth, primarily attributed to increased competition and inflation. India Services Purchasing Managers' Index fell from 61.0 in September to 58.4. Nevertheless, the sector continued to remain above the contraction threshold for the 27th consecutive month. The Composite PMI also declined to 58.4, as indicated by the data.

Chile's industrial production up in Sep'23

In September 2023, Chile's Industrial Production Index (IPI) showed a 1.5% y-o-y increase, driven by growth in the mining and electricity, gas, and water sectors. The mining sector (IPMin) saw a 4.3% increase, mainly due to higher copper production, with Chile mining 457,393 t in September, a 4.1% increase from the previous year. However, the manufacturing production index (IPMan) decreased by 1.1% during the same period.

Australian retail sales volumes show modest growth in Q3 2023

Australian retail sales volumes in the September quarter 2023 increased by 0.2%, ending a streak of three consecutive quarterly declines. Factors contributing to the rise included lower price growth, warm weather, and special events such as the FIFA Women's World Cup. Despite the increase, retail volumes remained down by 1.7% compared to the same quarter the previous year.

Peruvian mining sector expands by 8.8% in Sep'23

The National Institute of Statistics and Informatics of Peru (INEI) reported an 8.8% expansion in the domestic mining in September 2023 compared to the same period in 2022. The growth was driven by increased production of various metals, including molybdenum, copper, gold, zinc, and iron ore, offset by a slight decrease in silver production. Notably, copper production saw a 2% rise and zinc production witnessed a 8.6% rise.

Oil prices inch up

Today, oil prices remained relatively stable, with minimal changes. However, they were on track for a second consecutive week of declines. This was due to a decrease in concerns over supply disruptions driven by conflicts in the Middle East, a significant oil-producing area. Meanwhile, uncertainty persisted regarding the demand outlook in China, the world's largest importer of crude oil.

Brent oil futures went up by 0.2% to $87.06 per barrel. Crude oil WTI futures inched up by 0.3% to $82.75 per barrel, at the time of reporting.

Natural gas prices rise

Prices of natural gas were recorded at $3.523/MMBtu, up by 1.47% 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 106.09, slightly down by 0.03%.

The rupee was recorded at INR 83.25 against the dollar, remained largely stable against the previous closing.