Non-ferrous metals prices on LME show mixed trends

Prices of non-ferrous metals on the London Metal Exchange (LME) continued to display mixed trends d-o-d. Over a three-month period, aluminum futures have inched up by 0.4% to reach $2,204/t, nickel dipped by 0.5% to $20,441/t, copper dropped by 0.1% to reach $8,386/t, zinc prices dipped by 0.9% to $2,457/t and lead prices inched up by 0.4% to $2,136/t. Similarly, the stocks in LME registered warehouses also witnessed mixed trends.

COMEX market

Copper prices on the Commodity Exchange (COMEX) witnessed a decrease of 1% to reach $8,271/t from $8,315/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium

Domestic prices for aluminium scrap in India remained unchanged yesterday from the previous trading day, as market participants chose to adopt a cautious and observant strategy.

Copper

Copper prices in India showed no significant change compared to the previous day. While there is strong demand for raw copper, market participants are exhibiting caution due to uncertain future prospects, which is impacting their decision-making approach.

Zinc and lead

A marginal uptick in the demand for zinc and lead was noticed. Prices of special high-grade zinc went up by 1% w-o-w due to enhanced buying inquiries. In terms of imported products, zinc diecast from the Middle East saw a 1.4% w-o-w decline. Additionally, there was a modest 1% rise in lead prices.

Global updates

China's July vehicle sales decline

As per data released by the China Association of Automobile Manufacturers, vehicle sales in China reached 2.387 million units in July, marking a 1.4% decrease compared to the same period last year. Production figures for the previous month were estimated at 2.401 million units, reflecting a 2.2% y-o-y decline. Both sales and production also saw m-o-m declines of 9% and 6.2%, respectively.

Peru's Central Bank holds interest rate amid inflation concerns

In August 2023, Peru's central bank maintained its reference interest rate at 7.75%, aligning with market predictions. This marks the sixth consecutive steady decision, with future choices dependent on fresh inflation data. Despite easing, both annual and core inflation rates exceeded the upper limit of the target range, while economic indicators displayed cautious improvement.

Copper prices drop 1.8% on inventory increase

From 2 August to 9 August, the prices of copper experienced a decline of 1.8%, reaching a value of US$/Ib 3.81. This decrease can be attributed to the rise in inventories in the London metal market and the worsening outlook for demand in China.

June 2023 sees decrease in conventional product exports

During the month of June 2023, exports of conventional products amounted to US$ 4,176 million, indicating an 8.6% decline compared to the previous year. This reduction was primarily attributed to decreased shipments of hydrocarbons and fishing products. In comparison to June 2022, non-traditional product exports dropped by 6.4% to US$ 1,279 million. This decrease was mainly driven by lower shipping volumes and prices.

Oil prices drop d-o-d

Oil prices experienced a slight decline today, with investors considering positive demand predictions from the OPEC producer group in contrast to mixed economic data coming from China, the leading importer.

Brent oil futures dipped marginally by 0.13% to $86.29 per barrel. Crude oil WTI futures moved down slightly by 0.17% to $82.68 per barrel.

Natural gas prices gain

Natural gas futures in the United States dropped by 5% to $2.8 per million British thermal units (MMBtu) from a recent 5-month peak above $2.9 in the prior session. This decline was driven by a storage build that exceeded expectations last week, while investors are persistently observing both demand patterns and weather forecasts.

Prices of natural gas were recorded at $2.779/MMBtu, up 0.07% 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 102.53, witnessing a slight rise of 0.01%.

The rupee was recorded at 82.78 against the dollar, appreciating marginally by 0.07% against the last closing.