Non-ferrous metals prices on LME display uptrend barring nickel

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed uptrend except nickel. Three-month aluminium futures inched up marginally by 0.8% to settle at $2,191/t, nickel prices dipped by 0.5% to $18,274/t, copper prices edged up by 1.9% to $8,051/t, zinc prices gained by 1.4% to $2,442/t, and lead prices inched up by 0.6% to $2,109/t. Meanwhile, metal stocks in LME-registered warehouses displayed mixed trends.

COMEX market

Copper prices on the Commodity Exchange (COMEX) rose by 1.1% to reach $7,963/t from $7,875/t on the last trading day.

India's non-ferrous market

The price of Indian aluminum scrap remained unchanged from the previous week. The market sentiment was pessimistic due to decreasing futures prices and lower demand during festivals.

Copper prices in the domestic market continued to slide, with sellers being cautious. Despite some buyers stockpiling copper, demand for finished products appeared slow. According to a source, there is an expectation that the market situation will become clearer after the holidays.

Global updates

U.S. business output recovers in Oct'23

In October, U.S. business output improved as manufacturing rebounded from a five-month contraction, driven by increased new orders, while services activity accelerated. The S&P Global Composite PMI reached 51.0, up from September's 50.2, marking the highest level since July.

Eurozone business activity declines raises recession concerns

Eurozone business activity unexpectedly declined this month due to widespread demand drops, signaling a challenging start to the fourth quarter and raising concerns about the possibility of a recession. This may impact the European Central Bank's interest rate strategy.

Unexpected strength in Australian Q3 inflation

Australian inflation in the third quarter unexpectedly showed significant strength, driven by persistent cost pressures across various sectors. This poses a challenge for policymakers and increases the likelihood of an interest rate increase as early as next month. Investors have responded by increasing the chances of the Reserve Bank of Australia (RBA) resuming its tightening cycle in November, with futures now indicating a 66% probability of a quarter-point rate hike to 4.35%, up from 35% prior to the release of this data.

Teck withdraws Chile mill expansion application

Teck Resources, a Canadian mining company, withdrew its environmental permit application for expanding its Quebrada Blanca copper mine mill in Chile. They plan to submit a revised application, adding approximately 12 months to the regulatory process. Teck is about to launch the Quebrada Blanca Phase 2 project in Chile's far north this week. Teck holds a 60% stake in Quebrada Blanca, with Sumitomo Metal Mining and Sumitomo Corp holding 30% jointly, and Chilean state-run Enami holding the remaining 10%.

Oil prices dip

Brent oil futures went down by 0.1% to $87.98 per barrel. Crude oil WTI futures inched down by 0.14% to $83.62 per barrel, at the time of reporting.

Natural gas prices drop

Prices of natural gas were recorded at $2.965/MMBtu, down by 0.2% 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 106.17, witnessing a slight drop of 0.09%.

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