Non-ferrous metals prices on LME show downtrend

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed downtrend compared against the last trading day. The three-month aluminum futures have inched down by 1.3% to reach $2,175/t, nickel dipped by 1.0% to $20,241/t, copper dropped by 1.1% to $8,294/t, zinc prices dipped by 2.4% to $2,397/t and lead prices dipped by 1.2% to $2,109/t. However, the stocks in LME registered warehouses also witnessed an uptrend except aluminium.

COMEX market

Copper prices on the Commodity Exchange (COMEX) witnessed a decrease of 1% to reach $8,161/t from $8,271/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium

India's domestic aluminum scrap market experienced limited supply, yet strong production kept prices stable as of the last trading day.

Copper

Copper prices in India slightly declined by 0.6% as of 11 August, 2023, attributed to a $105-110/t drop in the (LME) rates. This cautious sentiment is causing a minor dip in the local market, compounded by an upcoming holiday that is prompting traders to adopt a wait-and-watch strategy.

Global updates

Auto Industry performance of July 2023

In July 2023, the production of passenger vehicles, three wheelers, two wheelers, and quadricycles totalled 20,87,087 units. While passenger vehicles and three wheelers exhibited positive performance, two wheeler sales experienced a decline of 7.2% compared to the previous year. Despite this, industry leaders anticipate sustained growth driven by favourable economic conditions, monsoon, and the upcoming festive season.

U.S. producer prices rebound in July

In July, the U.S. Producer Price Index for final demand grew 0.3%, rebounding from June's stagnation and May's 0.3% decline. Notably, final demand services rose by 0.5%, while goods prices edged up 0.1%. Excluding food, energy, and trade services, prices increased 0.2%, marking a 2.7% rise over 12 months.

Russia's Q2 2023 GDP surpasses expectations

In Q2 2023, Russia's gross domestic product (GDP) grew by 4.9% y-o-y, surpassing market predictions of a 4.7% increase. This rebound follows a 1.8% contraction in the previous quarter, as indicated by initial assessments.

China's July new Yuan loans miss expectations

Chinese banks issued 345.9 billion yuan ($47.80 billion) in new yuan loans in July, significantly lower than both June and analysts' predictions, amidst efforts to stabilise the economy. M2 money supply and outstanding yuan loans also fell below forecasts, reflecting a more tempered expansion.

Oil prices drop d-o-d

Oil prices declined today due to worries about China's struggling economic recovery and a stronger dollar, offsetting the positive impact of seven weeks of continuous increases driven by OPEC+ production cuts that have tightened supply.

Brent oil futures dipped marginally by 1.06% to $85.89 per barrel. Crude oil WTI futures moved down slightly by 1.13% to $82.25 per barrel.

Natural gas prices gain

Prices of natural gas were recorded at $2.781/MMBtu, up 0.4% 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 102.85, witnessing a slight rise of 0.32%.

The rupee was recorded at 82.96 against the dollar, depreciating marginally by 0.22% against the last closing.