Non-ferrous metals prices on LME display mixed trends

Prices of non-ferrous metals on the London Metal Exchange (LME) displayed mixed sentiments today compared to the previous closing on 25 Aug'23. Three-month aluminium futures inched up by 0.9% to $2,170/t, nickel dipped 1.4% to $20,500/t, copper moved up slightly by 0.7% to $8,419/t, zinc prices gained 1.5% at $2,418/t and lead prices edged down by 0.4% to $2,152/t.

Metal stocks in LME registered warehouses witnessed a dip except copper as of the last closing. However, LME was closed yesterday on the account of bank holiday.

COMEX market

Copper prices on the Commodity Exchange (COMEX) witnessed an increase of 0.3% to reach $8,337/t from $8,315/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium

Yesterday, due to the global market shutdown, domestic prices of aluminum scrap remained stable leading to a cautious attitude of wait-and-see among buyers. Nonetheless, there is rising demand for utensils in certain regions, according to sources.

Copper

Copper prices in India remained range-bound yesterday. Although LME was closed due to bank holiday, copper prices increased noticeably and this momentum is expected to continue. However, at the moment, buyers are displaying reluctance to make purchases at higher prices. This hesitation on the part of buyers has prompted sellers to offer discounts in order to facilitate sales.

Global updates

Copper rises amid weaker dollar

Copper prices gained 0.5% on a weaker dollar due to upcoming significant US economic data. China's steps to bolster its stock market also boosted sentiment. LME aluminum rose to $2,160.50, while nickel slipped to $20,540. Zinc climbed to $2,406.50, and lead fell to $2,153.

China's August factory activity contracts

China's factory activity likely contracted for the fifth consecutive month in August, with weak demand and recovery concerns. The purchasing managers' index (PMI) is predicted to rise slightly to 49.4 from July's 49.3, as per reports. Negative sentiment prevails due to diminished demand from trading partners.

Japan's July unemployment rate rises

In July, Japan's unemployment rate rose to 2.7%, the first increase in four months, with a slight weakening of labour demand. The jobless rate for women increased across age groups, while it fell for men aged 15-24 and 45-54.

Oil prices steady

Today, oil prices remained largely stable showing a slight decrease, with concerns of potential US interest rate hikes affecting demand balanced by worries about a tropical storm near the US Gulf Coast potentially impacting supply.

Brent oil futures were down slightly by 0.08% to $84.35 per barrel. Crude oil WTI futures dipped marginally by 0.14% to $79.99 per barrel.

Natural gas prices dip

Prices of natural gas were recorded at $2.555/MMBtu, down 0.9% 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 103.93, witnessing a slight drop by 0.12%.

The rupee was recorded at 82.63 against the dollar, depreciating marginally by 0.04% against the last closing.