Non-ferrous metals prices on LME show mixed trends

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed mixed trends. Three-month aluminium futures gained marginally by 0.1% to settle at $2,185/t, nickel prices fell by 0.7% to $18,520/t, copper prices edged up by 0.2% to $7,993/t, zinc prices dipped by 0.9% to $2,414/t, and lead prices inched down by 0.1% to $2,097/t. Meanwhile, metal stocks in LME-registered warehouses also displayed mixed trends.

COMEX market

Copper prices on the Commodity Exchange (COMEX) rose marginally by 0.6% to reach $7,919/t from $7,875/t on the last trading day.

India's non-ferrous market

The aluminium scrap market in India held steady yesterday compared to the previous day's rates. Despite subdued buyer demand, the ample supply of raw materials prevented price decreases. Sellers, therefore, opted to maintain their prices, resulting in a stable market.

Indian copper prices remained in a narrow range as buyers adopted a cautious approach, influenced by persistent weakness in global demand. According to a trader, "Many buyers have stored enough inventory, and we expect a clearer market picture after Diwali."

In India, zinc and lead prices saw marginal weekly declines due to price adjustments by HZL. Middle East-origin zinc diecast (5%) was assessed at $1,970/t CIF Mundra. The market exhibited limited activity due to the festive season, with prospects of potential price increases post Diwali.

Global updates

China keeps benchmark lending rates

China maintained its benchmark lending rates in line with market expectations, with the one-year loan prime rate at 3.45% and the five-year rate at 4.20%. The decision comes as China's economy shows signs of stabilisation, requiring less monetary support, and concerns about yuan depreciation deter further rate cuts.

Freeport-McMoRan's Q3 profit exceeds expectations

Copper miner Freeport-McMoRan reported a better-than-expected third-quarter profit but revealed plans to slow expansion due to inflation and falling copper prices. This announcement reflects a broader trend in the mining industry, warning of potential shortfalls in critical minerals supply for the clean energy transition. Despite copper prices slipping over 12% in the past six months, Freeport's cost to produce copper increased 18% sequentially in Q3.

Japan's core inflation slips below 3%

Japan's core inflation fell below 3% in September for the first time in over a year but remained above the central bank's target. The Bank of Japan (BOJ) will examine this data at its upcoming policy meeting, fueling expectations of a gradual shift away from ultra-easy monetary policy. The core consumer price index (CPI), excluding volatile fresh food costs, increased by 2.8% in September y-o-y, exceeding market expectations but easing from August's 3.1%.

Europe: ECB ends rate hike cycle

The European Central Bank (ECB) has concluded its rate hiking cycle. It is expected that the ECB will begin easing, but the exact timing is uncertain. The median forecast among economists indicated a potential easing in the third quarter of 2024 or later, with the deposit rate reaching 3.50% by the end of September.

Mingtai tests RUSAL's low-carbon aluminum

Mingtai Aluminum, China's leading company, is testing ALLOW INERTIA aluminum produced by RUSAL. This aluminum, made with innovative inert anode technology, boasts the world's lowest carbon footprint for primary aluminum. It significantly reduces greenhouse gas emissions during production, aligning with Mingtai's decarbonisation goals for sustainable products.

Oil prices gain

Oil prices continued to rise today, marking a second consecutive week of gains. This increase is driven by concerns that the Israel-Gaza conflict could escalate and disrupt oil supplies from the Middle East, a major global production region.

Brent oil futures went up by 0.95% to $93.26 per barrel. Crude oil WTI futures inched up by 1.17% to $90.42 per barrel, at the time of reporting.

Natural gas prices dip

Prices of natural gas were recorded at $2.935/MMBtu, down by 0.74% 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 106.3, witnessing a slight rise of 0.04%.

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