Non-ferrous metals prices on LME depicts uptrend d-o-d

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed positive momentum. Over a three-month period, aluminum futures increased by 1% to reach $2,230/t, nickel inched up by 0.2% to reach $21,607/t, copper saw a rise of 1.2% to reach $8,611/t, zinc prices edged up by 0.1% to reach $2,485/t, and lead prices moved up marginally by 0.5% to $2,157/t. Similarly, the stocks in the LME registered warehouse for base metals continued to remain volatile d-o-d.

COMEX market

Copper prices on the Commodity Exchange (COMEX) witnessed an increase of 1% to reach $8,557/t from $8,447/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium market

Indian aluminium scrap prices dropped yesterday after primary players reduced their prices and falling futures.

Copper market

Yesterday, Indian domestic copper prices inched down d-o-d following a 2% fall in LME. The market started slow with the new month with buyers remaining cautious. The offers of imported copper motor mix of USA-origin were heard at around $1,130-1,140/t. However, buyers refused to buy at these levels as per sources.

Global updates

Bank of England raises rates

The Bank of England's Monetary Policy Committee (MPC) voted 6-3 to raise Bank Rate by 0.25% to 5.25%. The decision considers 2% inflation target and economic growth. Projections show CPI inflation at 5% by year-end. Upside risks to inflation persist. Recent data suggests increased inflationary pressures, leading to the current rate hike. Further tightening may occur to ensure sustained 2% inflation.

Indian economy's strong growth forecast

It is predicted India's economy to grow at a 6.7% annual rate till 2031, driven by exports, consumer demand, and manufacturing. Despite rate hikes and global slowdown, India is expected to maintain 6% growth this fiscal year, outpacing the G20. The economy could double in size by 2031, reaching $6.7 trillion, elevating India to the world's third-largest economy.

Rio Tinto's aluminum decarbonization challenges

Rio Tinto faces challenges producing low-carbon aluminum, recording a $1.175 billion impairment due to market conditions and the cost of decarbonization. The aluminum industry, vital for the green energy transition, paradoxically contributes about 2% of annual man-made emissions due to its carbon-intensive processes.

Oil prices rise d-o-d

Oil prices increased for a second consecutive day, headed for their sixth week of growth. Saudi Arabia and Russia, ranking as top crude producers, committed to reducing output into the following month.

Brent oil futures gained 0.16% to $85.28 per barrel. Crude oil WTI futures moved up by 0.26% to $81.76 per barrel.

Natural gas prices up

Prices of natural gas were recorded at $2.565/MMBtu, down slightly 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 102.39, witnessing a slight down of 0.14%.

The rupee was recorded at 82.78 against the dollar, depreciating marginally by 0.11% against the last closing.