Non-ferrous metals prices on LME witness downtrend d-o-d

Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed a downtrend. Over a three-month period, aluminum futures decreased by 1.2% to reach $2,213/t, nickel experienced a fall of 3.8% to reach $21,590/t, copper saw a moderate drop of 0.6% to reach $8,617/t, zinc prices dipped 0.6% to reach $2,473/t, and lead prices edged down by 1.2% to $2,152/t. Similarly, LME warehouse stocks dropped for all base metals except lead.

COMEX market

Copper prices on the Commodity Exchange (COMEX) witnessed a decrease of 0.3% to reach $8,580/t from $8,602/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium market

The Indian domestic alloy ingot market experienced a slight price increase due to rising futures and limited raw material supply. OEMs are participating moderately with a shift from cash to credit payments due to tight liquidity. ADC12 supply has not fully recovered, affecting small and medium-scale manufacturers. Maruti Suzuki India Limited may set its August 2023 ADC12 prices at INR 203,000/t, pending confirmation, following July's settlement at INR 204,000/t.

Indian domestic aluminium scrap market prices surged following a price hike by primary producers. Tense prices remain stable. Tight supply is observed, especially for auto-casting scrap grade and taint tabor.

Copper market

Indian domestic copper prices showed stability with no significant change d-o-d, supported by an increased demand. Meanwhile, LME copper futures experienced a 1% dip to $8,587/t, yesterday, at the time of reporting. Despite this, prices are predicted to rise next month due to strong demand. Additionally, import offers remain high due to robust domestic market demand.

Global updates

US new home sales report for June 2023

In June 2023, US' new home sales reached an annual rate of 697,000, down 2.5% from May but up 23.8% from June 2022. The median sales price was $415,400, with 432,000 new houses available for sale, representing a 7.4-month supply at the current sales rate.

China's H1 2023 retail sales surge 8.2%

Chinese retail sales of consumer goods surged 8.2% y-o-y in January-June 2023 (H1 2023), reaching 22.76 trillion yuan ($3.17 trillion), driven by an economic recovery and increased incomes. Consumption played a crucial role in economic growth, contributing 77.2%. Online retail sales grew by 13.1%, with new energy passenger vehicle sales soaring 37.3% y-o-y. China aims to continue promoting consumption, income growth, and new consumption scenarios for sustainable economic development.

India's robust foreign investment amid US Fed rate hikes

Despite aggressive interest rate hikes by the US Federal Reserve, foreign investment in India remains robust. India's strong growth, GDP outpacing major economies, an improved infrastructure, and strategic Free Trade Agreements (FTAs) contribute to its attractiveness for investors. The demographic advantage of a young population further supports India's position as a promising investment destination, offsetting potential short-term liquidity crunch effects.

Oil prices inch up

Today, oil prices rebounded, to recover from losses incurred in the previous session. The increase was attributed to supply constraints and optimistic expectations of heightened Chinese demand, which outweighed worries about an economic slowdown.

Brent oil futures gained 0.8% to $83.58 per barrel. Crude oil WTI futures rose marginally by 0.9% to $79.52 per barrel.

Natural gas prices dip

Prices of natural gas were recorded at $2.625/MMBtu, down 1.5% 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 101.17, witnessing a slight drop of 0.18%.

The rupee was recorded at 81.99 against the dollar, remained largely stable against the last closing.