Non-ferrous metals prices on LME edge lower, lead only exception

Apart from lead, prices of all other non-ferrous metals on the London Metal Exchange (LME) displayed a downtrend. Three-month aluminium futures inched down by 1.5% to $2,190/t, nickel prices dropped 2.1% to $19,924/t, copper prices edged down by 0.1% to $8,405/t and zinc prices fell by 1.9% to $2,520/t. In contrast, lead prices rose by 0.7% to $2,261/t. Meanwhile, metal stocks in LME-registered warehouses witnessed mixed trend.

COMEX market

Copper prices on the Commodity Exchange (COMEX) dipped 1% to reach $8,359/t from $8,403/t on the last trading day.

India: Non-ferrous scrap markets

Domestic prices of aluminium remained steady on 15 September, staying range-bound. According to trade sources, there hasn't been any significant improvement in the supply of casting scrap.

On the other hand, the domestic copper market witnessed a slight increase in prices on the last trading day. The price of copper armature scrap was assessed at INR 677,000/t, while secondary rod stood at INR 715,000/t.

Global updates

US industrial production grows

In August, industrial production in the US inched up 0.4%, but manufacturing was held back by a 5% drop in motor vehicle production. Mining rose 1.4%, and utilities by 0.9%. Total production increased 0.2% y-o-y. Capacity utilisation reached 79.7%, aligning with its long-term average. Other sectors like consumer non-durables and materials witnessed growth. Defence and space equipment production rose by 3.5%. Manufacturing output increased 0.1% but remained 0.6% below the previous year.

Codelco to alter copper supply contracts

Chile's Codelco plans to cease long-term copper concentrate contracts with Chinese clients from 2025, opting for deals that include value-added intermediate products. Some Chinese customers have objected, but due to anticipated deficits, they will need to negotiate new contracts. Codelco cites concerns about fulfilling existing obligations and intends to restructure its sales strategy. Last year, operational issues led to reduced production.

China: Base metals prices up

In early September, monitoring 50 crucial production materials across nine categories in the Chinese market revealed that prices for 43 of these products had increased, while prices for 7 products decreased compared to late August. All non-ferrous metals witnessed gains. Notably, an increase in the price of aluminum ingot (A00) by 3.1% and lead ingot by 4.1% were recorded.

Oil prices rise

Today, oil prices increased for the third consecutive session. This uptrend was supported by predictions of a growing supply shortfall in the fourth quarter, following the extension of production cuts by Saudi Arabia and Russia. Additionally, there was optimism about a rebound in demand from China, which is the world's leading importer of crude oil.

Brent oil futures went up slightly by 0.71% to $94.59 per barrel. Crude oil WTI futures inched up by 0.84% to $91.53 per barrel, at the time of reporting.

Natural gas prices inch up

Prices of natural gas were recorded at $2.647/MMBtu, up 0.04% at the time of publishing this report.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 105.22, witnessing a slight dip of 0.1%, at the time of reporting.

The rupee was recorded at 83.17 against the dollar, depreciated marginally by 0.04% from the last closing.