Non-ferrous metals prices on LME depict mixed trends d-o-d

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed mixed trends. Over a three-month period, aluminum futures increased by 0.4% to reach $2,213/t, nickel experienced a rise of 0.5% to reach $21,689/t, copper saw a moderate drop of 0.5% to reach $8,569/t, zinc prices dipped 0.8% to reach $24,54/t, and lead prices inched up by 0.3% to $2,158/t.

The stocks in the LME registered warehouse for all base metals gained except aluminium. Notably, the stocks of zinc rose 9.2% to 96,075 t from 87,950 t.

LME zinc stocks surpassed 90,000 t due to increased deliveries in Singapore. The rise in inventory kept zinc prices low. More zinc may enter the market depending on China's refined zinc imports.

COMEX market

Copper prices on the Commodity Exchange (COMEX) witnessed a decrease of 1% to reach $8,514/t from $8,580/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium market

Indian domestic aluminium scrap prices remained stable d-o-d as of yesterday amid fluctuations in the futures market.

Copper market

Yesterday, Indian domestic copper prices showed stability with limited d-o-d fluctuations due to moderate transactions. Market sources expect minimal price fluctuations in the near future.

Zinc and lead market

India's SHG zinc spot prices increased by 3% w-o-w due to improved demand, while lead prices remained mostly stable with limited inquiries. Hindustan Zinc Ltd (HZL) raised zinc ingot prices by INR 3,400/t, and lead ingot prices were increased by INR 3,000/t as of 27 July 2023.

Global updates

US GDP grows 2.4% in Q2 2023

According to the "advance" estimate released by the Bureau of Economic Analysis, the US' real gross domestic product (GDP) grew at an annual rate of 2.4% in the second quarter of 2023. This is an improvement compared to the first quarter, where real GDP increased by 2.0%.

Southern Copper takes action against Peru's illegal miners

Southern Copper has initiated legal actions to remove "illegal miners" occupying its Los Chancas project in Peru, hindering its development. The project is vital for the company's copper production goal of 1.8 mnt y-o-y by 2030. Small-scale mining is a growing issue in Peru, the second-largest copper producer.

Vale to sell 13% stake for $3.4 billion to boost copper and nickel output

Brazilian miner Vale will sell a 13% stake in its base metals business for $3.4 billion to boost copper and nickel output. Saudi Arabian Mining Co and the country's Public Investment Fund will acquire 10%, while Engine No. 1 will acquire 3%. The deal is expected to close by Q1 2024.

Australia's retail trade falls in June 2023, PPI increases

In June 2023, the seasonally adjusted estimate for retail trade in Australia fell by 0.8% compared to the previous month. However, it rose by 2.3% when compared to June 2022. Regarding the Producer Price Indexes for final demand (excluding exports), there was a 0.5% increase in the current quarter and a 3.9% increase over the past twelve months.

Oil prices inch down

Brent oil futures dipped 0.5% to $83.81 per barrel. Crude oil WTI futures inched down by 0.3% to $79.80 per barrel.

Natural gas prices up

Prices of natural gas were recorded at $2.608/MMBtu, up 1.5% at the time of publishing this insight.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 101.8, witnessing a slight rise of 0.03%.

The rupee was recorded at 82.27 against the dollar, depreciating marginally by 0.3% against the last closing.