Non-ferrous metals prices on LME show positive momentum d-o-d

Non-ferrous metals prices on the London Metal Exchange (LME) witnessed an uptrend. Three-month aluminium futures increased by 0.5% to reach $2,201/t, while nickel rose 1.8% to $21,280/t, copper inched up by 0.6% to $8,485/t, zinc prices gained by 1% to $2,383/t and lead prices moved up by 1.1% to $2,107/t. Meanwhile, the stocks at LME warehouses dropped slightly except lead.

COMEX market

Copper prices on the Commodity Exchange (COMEX) witnessed an increase of 1% to reach $8,425/t from $8,381/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium market

India's domestic aluminium scrap market stayed stable as participants adopted a cautious approach due to primary manufacturers' price cuts. Prices remained mostly unchanged compared to the previous week, while LME aluminium futures rose by 1% to $2,213/t, at the time of reporting yesterday.

Copper market

Indian domestic copper prices remained steady with limited d-o-d fluctuations, as of 20 July 2023. LME copper futures increased by 1.63% to $8,567/t, while MCX rose by 1.44% to INR 732,000/t, at the time of reporting. Slow monsoon-related demand is gradually improving.

Zinc and lead market

India's special high-grade zinc prices showed limited w-o-w fluctuations with moderate transactions. Hindustan Zinc reduced prices by INR 1,200/t. Demand is anticipated to rise in the near-term. The lead market experienced sluggish activity, with prices remaining stable w-o-w.

Global updates

US sanctions target Russian copper

US sanctions targeted Russian copper producer, Ural Mining And Metallurgical Company (UMMC), to curb earnings from the mining sector due to the 2022 Ukraine invasion. Over 120 entities, including individuals and companies, were added to the sanctions list.

Norsk Hydro urges LME reconsideration

Norsk Hydro urged the LME to reconsider its decision not to ban Russian aluminium from its warehouse network, citing concerns that the large volumes are undermining the benchmark status of the LME aluminium contract. Russian aluminium constituted 80% of available inventories in June.

Hydro raises capital expenditure

Norwegian aluminium producer, Hydro (NHY.OL), increased its capital expenditure guidance for the year as second quarter (Q2) core earnings declined to 7.1 billion crowns ($706 million), in line with analysts' forecast, compared to 11.6 billion crowns in the previous year.

Oil prices up

Brent oil futures inched up 0.8% to $80.32 per barrel. Crude oil WTI futures rose marginally by 0.8% to $76.30 per barrel.

Natural gas prices inch down

Prices of natural gas were recorded at $2.742/MMBtu, down 0.54% 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 100.80, witnessing a slight drop of 0.08%.

The rupee was recorded at 82.03 against the dollar, remained largely stable appreciating marginally by 0.01% against the last closing.