Non-ferrous metals prices on LME display mixed trends

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed mixed trends. Three-month aluminium futures dipped marginally by 0.2% to settle at $2,181/t, nickel prices inched up by 0.3% to $18,588/t, copper prices edged down by 0.5% to $7,948/t, zinc prices gained by 1% to $2,438/t, and lead prices inched up by 0.1% to $2,099/t. Meanwhile, metal stocks in LME-registered warehouses also displayed mixed trends.

COMEX market

Copper prices on the Commodity Exchange (COMEX) dipped by 1.1% to reach $7,831/t from $7,919/t on the last trading day.

India's non-ferrous market

The prices of Indian aluminium scrap witnessed a drop on the last trading day. This price adjustment was a response to sluggish demand and increased availability of raw materials. Meanwhile, LME aluminium futures remained relatively steady at the time of reporting.

Copper prices in the domestic market kept decreasing, primarily due to cautious buyers reacting to global demand challenges. A source mentioned that many buyers have stockpiled an ample inventory, and they expect greater market clarity after the Diwali holidays.

Global updates

South32 Reports FY24 Production Updates

South32's FY24 production guidance remains unchanged. Alumina output increased by 3% due to recoveries in Brazil Alumina and maintenance completion at Worsley Alumina. Hillside Aluminium tested maximum capacity, and low-carbon aluminum production rose by 2%. Sierra Gorda saw an 8% drop in copper production, while Cannington's zinc equivalent production decreased by 6%. The latter is expected to achieve 11% production growth in FY24.

Malaysia's Q3 GDP Growth Accelerates

Malaysia's economy gained momentum in the third quarter, with a 3.3% y-o-y expansion, driven by growth in services and other sectors, according to preliminary estimates from the statistics department. This follows a slower 2.9% growth rate in the second quarter due to declining exports and a global economic slowdown. In the third quarter, the gross domestic product also rebounded strongly, growing by 5.2% q-o-q after a 0.8% decline in the second quarter.

RBI: India's Economy Resilient

RBI Governor revealed that while the global economy faces deceleration due to stringent financial conditions, India's domestic economic situation appears more optimistic, with a projected growth rate of 6.5% for FY 2023-24. Despite global challenges, India's strong macroeconomic fundamentals and resilience make it a potential global growth engine, according to Das. However, inflation remains a concern, primarily driven by food price shocks due to adverse weather events.

Oil prices dip

Oil prices slid today as diplomatic efforts grew over the weekend to contain the conflict between Israel and the Palestinian Islamist group Hamas, although Gaza continued to be bombarded.

Brent oil futures went down by 1.13% to $91.12 per barrel. Crude oil WTI futures inched down by 1.34% to $86.90 per barrel, at the time of reporting.

Natural gas prices drop

Prices of natural gas were recorded at $2.874/MMBtu, down by 0.86% 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 106.3, witnessing a slight rise of 0.13%.

The rupee was recorded at 83.26 against the dollar, remained largely stable against the previous closing.