Non-ferrous metals prices drop d-o-d amid falling futures

The three-month futures contracts for all base metals showed a downtrend. Prices of aluminium have decreased by 0.6% to $2,224/t. Nickel prices dropped by 0.6% to $21,027/t. Copper prices also experienced a slight decline of 0.1% to $8,123/t, while zinc prices saw a significant drop by 1.7% to $2,302/t. Lead prices, on the other hand, dipped by 0.7% to $2,064/t.

COMEX market

If we look at the Commodity Exchange market (COMEX), prices of copper have decreased by 1% to $8,051/t from $8,095/t on the last trading day.

Major global happenings

China: Economic recovery stumbles as PMI faces downward spiral, demand weakens

China's economic recovery is facing ongoing challenges, particularly in the manufacturing sector, as demand weakens. The official manufacturing purchasing managers' index (PMI) for May dropped to 48.8 compared to April's 49.2, indicating a downtrend.

Similarly, the non-manufacturing gauge decreased from 56.4 to 54.5 during the same period. Alongside these factors, China's economic revival is being hindered by increasing youth unemployment, as well as underwhelming retail sales and industrial production.

Japan: Industrial production declines in April 2023

Preliminary data reveals an unexpected 0.4% m-o-m decline in Japan's industrial production in April 2023, shifting from a 1.1% growth in March. This marks the first decrease since January, primarily driven by declines in production machinery (-7.4% compared to 5.8% in March), iron, steel, and non-ferrous metals (-1.1% compared to 0.3%), and transport equipment (1.6% compared to 4.9%).

Glencore invests in Antapaccay project in Peru

Glencore Plc, a prominent mining company, has announced its intentions to amplify its investment in the expansion project at the Antapaccay mine located in Peru. Originally set at $590 million, the initial investment has now been raised to $1.5 billion. The decision to increase funding for the project is aimed at revitalising its operations, as the Antapaccay mine plays a pivotal role in sustaining copper production.

India: Non-ferrous scrap market

Imported aluminium scrap prices remain volatile

Imported aluminium scrap prices in India experienced significant fluctuations recently. Certain grades witnessed notable increases by up to $40/tonne (t) this week. However, there were some specific grades that experienced a fall by up to $10/t compared to last week.

Copper domestic scrap prices dip amid weak demand

Copper scrap prices in India's domestic market dipped by 0.3%. Buyers in the domestic market are cautious which resulted in soft demand. This can be attributed to the strengthening of U.S. dollar. Additionally, the uncertain or uneven demand in China further aggravated their concerns.

Oil, natural gas prices dip

Brent oil futures decreased by 0.4% to $73.43 per barrel. Similarly, crude oil WTI futures also dropped by 0.2% to $69.34 per barrel.

Prices of natural gas were recorded at $2.301/MMBtu at the time of publishing this insight, down 1% as against the last closing.

Dollar index

The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 104.30. The index increased by 0.13% against the last session.

The rupee was recorded at 82.67 against the dollar, appreciating marginally by 0.08 paise against the last closing.