Non-ferrous metals prices on LME display mixed trends

Prices of non-ferrous metals on the London Metal Exchange (LME) displayed mixed trends. Three-month aluminium futures inched down by 0.4% to $2,137/t, nickel dipped by 0.7% to $20,131/t, copper moved up marginally by 0.06% to $8,240/t, zinc prices rose by 0.1% to $2,300/t and lead prices increased marginally by 0.3% to $2,149/t. Similarly, metal stocks in LME registered warehouses witnessed mixed trends.

COMEX market

Copper prices on the Commodity Exchange (COMEX) witnessed an increase of 1% to reach $8,226/t from $8,183/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium

The Indian domestic aluminum scrap market displayed stability as of 18 August, 2023 as key purchasers chose a cautious stance of observing the situation before making any significant moves.

Copper

The Indian copper market experienced range-bound levels with a slight upward shift in prices as of the last trading day. Copper futures on the LME hovered around $8,220 to $8,230/t on a stable equilibrium between supply and demand. Trade sources expect prices to remain stable due to sustained demand for finished products.

Global updates

Surging zinc supply signals market shift

London Metal Exchange (LME) zinc stocks have more than doubled in a month, reaching 145,975 t, the highest since February 2022. The surge in zinc supply is due to weakening market dynamics, with prices down by 24% since January. A recent mini-squeeze prompted metal outflows from off-market storage. The surplus zinc arrives as global refined metal production exceeded demand by 267,000 t in the first five months of 2023, reflecting a shift to surplus.

China cuts lending rate amid challenges

China's move to lower its one-year benchmark lending rate seeks to boost credit demand amid economic challenges like a property slump. The decision to keep the five-year rate unchanged surprised markets and raised concerns about the yuan's weakening and policy effectiveness.

Oil prices up

Oil prices in Asian trading increased despite a China interest rate cut. The outlook remains optimistic due to the possibility of tighter supplies, driven by substantial production cuts by Saudi Arabia and Russia this year, countering concerns of slowing Chinese demand and rising US interest rates.

Brent oil futures were up by 0.65% to $85.35 per barrel. Crude oil WTI futures moved up slightly by 0.6% to $81.78 per barrel.

Natural gas prices up

Prices of natural gas were recorded at $2.591/MMBtu, up 1.61% 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 103.38, witnessing a slight rise by 0.01%.

The rupee was recorded at 83.10 against the dollar, depreciating marginally by 0.02% against the last closing.