Non-ferrous metals prices exhibit negative trend, except aluminium

Except aluminum, the three-month futures contracts for various base metals observed a decrease. Nickel prices fell by 2.1% to reach $20,588/t. Copper prices also experienced a slight decline of 0.4% to reach $8,089/t, whereas zinc prices witnessed a significant drop of 2.3% to reach $2,248/t. Lead prices, on the other hand, dipped by 2.5% to reach $2,012/t. However, aluminum managed to show a marginal increase of 1% and reached $2,246/t.

During yesterday's trading session on the London Metal Exchange (LME), the base metals demonstrated a positive trend, with all metals recording gains of up to 1.14%. As a result, the market closed higher, reflecting the overall positive performance of the base metal sector.

COMEX market

Copper prices on the Commodity Exchange market (COMEX) have seen a 1% decline, dropping from $8,051/t on the previous trading day to $7,985/t.

Major global happenings

The U.S. House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling with bipartisan support, avoiding a catastrophic default. The legislation, backed by President Biden and House Speaker Kevin McCarthy, received opposition from hardline conservatives but was ultimately passed with the help of Democrats. The bill, which now heads to the Senate, suspends the borrowing limit until January 2025, as per reports.

Chile: Copper production contracts y-o-y, Codelco shuts Ventanas smelter

According to the latest data from Chile's INE statistics agency, copper output in the country experienced a y-o-y decline of 1.1% in April, amounting to a total of 417,279 t. Simultaneously, the manufacturing production in Chile saw a significant drop of 6.4% during the same period, falling well below the predicted 3.0% decrease.

Codelco, the global leader in copper production, has suspended operations at its Ventanas smelter on Chile's central coast due to environmental incidents. The closure demonstrates Codelco's commitment to sustainable mining and meeting demand while prioritising an environmental responsibility.

India: Non-ferrous scrap market

Aluminium: ADC12 prices and domestic scrap remain rangebound w-o-w

The prices of domestic ADC12 aluminium alloy ingots remained steady w-o-w with minimal fluctuations. The market witnessed limited trading activity as supply and demand remained balanced, leading to prices being confined within a narrow range without significant movement.

India's domestic aluminium scrap prices continued to remain range-bound d-o-d. However, trade activities remained slow. Participants are awaiting the P1020 price announcement by major players.

Copper: domestic scrap prices dip amid weak demand

Copper scrap prices in India's domestic market experienced a decline of up to 1.2% d-o-d due to a decrease in LME three-month futures. This led suppliers to refrain from selling their stocks at lower prices. On the other hand, buyers are adopting a cautious approach and are waiting for additional price corrections before resuming their purchasing activities.

Oil prices rise, natural gas prices dip

Brent oil futures increased by 0.62% to $73.05 per barrel. Similarly, crude oil WTI futures also dropped by 0.58% to $68.48 per barrel.

Prices of natural gas were recorded at $2.260/MMBtu at the time of publishing this insight, down 0.26% as against the last closing.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 104.34. The index increased marginally by 0.01% against the last session.

The rupee was recorded at 82.45 against the dollar, appreciating marginally by 0.27% against the last closing.