Non-ferrous metals prices on LME drop; lead sole exception

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed a downtrend. The only exception was lead. Over a three-month period, aluminum futures have inched down by 0.1% to reach $2,230/t, nickel dipped by 1% to reach $21,102/t, copper edged down by 1% to reach $8,485/t and zinc prices fell marginally by 0.3% to reach $2,496/t. In contrast, lead prices inched up by 0.5% to $2,138/t. Likewise, stocks in LME warehouses decreased except copper, which remained stable.

COMEX market

Copper prices on the Commodity Exchange (COMEX) witnessed a decrease of 1% to reach $8,425/t from $8,491/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium

Indian aluminum scrap prices remained relatively unchanged yesterday compared to Friday. This stability was attributed to a discrepancy between buying and selling prices along with fluctuations in the futures market.

Copper

Domestic copper prices stayed within a consistent range as of 7 August compared to the previous trading day. The start of the new month saw a slow beginning, with buyers starting to engage in market activities only gradually.

Global updates

China's July trade decline raises concerns

China's imports and exports in July fell more than anticipated, posing a threat to the country's economic growth. Imports plunged 12.4% y-o-y, while exports contracted 14.5%, indicating a potential slowdown in third-quarter growth. Weak consumer spending in developed economies and subdued demand contribute are the key economic challenges. Efforts to stimulate domestic consumption without excessive monetary easing are underway, with a notable impact on Asian trade.

Japan's household spending drops, incomes decline

Japan's consumption spending (for households of two or more people) was JPY 275,545 ($1,922) per household, down 4.2% y-o-y, while actual income for working households averaged JPY 898,984 ($6,273), decreasing by 5.6% y-o-y.

July business resilience

In July, business conditions defied expectations of a cooling economy. Demand, profitability, and employment indicators remained strong, along with a rebound in capacity utilisation. Rising labour and purchase costs led to increased prices and inflation concerns, despite mixed responses on passing costs to consumers.

Oil prices rise

Today, oil prices showed minimal fluctuations following China's report of a significant decrease in imports during July, which heightened concerns about demand. However, these concerns were counterbalanced by worries about reduced supply due to output cuts from Saudi Arabia and Russia.

Brent oil futures gained marginally by 0.01% to $85.35 per barrel. Crude oil WTI futures moved up slightly by 0.07% to $82.00 per barrel.

Natural gas prices fall

Prices of natural gas were recorded at $2.710/MMBtu, down 0.55% at the time of publishing this insight.

Dollar index

The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 102.27, witnessing a slight uptick of 0.22%.

The rupee was recorded at 82.80 against the dollar, depreciating marginally by 0.06% against the last closing.