Non-ferrous metals prices remain firm d-o-d

Non-ferrous metals prices on the London Metal Exchange (LME) continued to depict positive trends d-o-d. The three-month futures contracts for aluminium edged up 0.9% to $2,253/t, nickel inched up by 3.5% to $22,720/t, and copper rose by 0.5% to $8,509/t, zinc rose by 4.4% to $2,486/t and lead inched up by 1.8% to $2,117/t.

COMEX market

Copper prices on the Commodity Exchange market (COMEX) have seen a rise of 1% to $8,513/t from $8,425/t on the previous trading day.

Major global happenings

China: Economy falters, recovery uncertain

China's economy faced a setback in May as both industrial output and retail sales growth fell short of expectations, highlighting the need for further measures to support the fragile post-pandemic recovery.

Industrial output in May grew by 3.5% compared to the previous year, marking a slowdown from April's 5.6% expansion and slightly below a 3.6% increase is expected. Weak domestic and international demand continued to pose challenges for manufacturers.

China: Domestic non-ferrous prices (1 June- 10 June)

From 1 June to 10 June, domestic prices for non-ferrous metals in China witnessed changes.

Electrolytic copper saw an increase of 2.9% compared to the previous period, reaching RMB 66,816/t ($9,337/t). Similarly, aluminium ingot (A00) prices rose by 1.1% to RMB 18,454/t ($2,578/t). On the other hand, the prices of zinc ingot and lead ingot experienced a slight decline of 0.9%, with zinc ingot priced at RMB 19,705/t ($2,753/t) and lead ingot at RMB 14,982/t ($2,093/t).

Australia: Unemployment rate declines

Australia's unemployment rate declined by 0.1% to 3.6% in May, as per the Australian Bureau of Statistics. Employment rose by approximately 76,000 individuals, resulting in a decrease of 17,000 in the number of unemployed individuals.

India: Non-ferrous scrap market

Domestic copper market

India's domestic copper market witnessed an upswing in prices w-o-w following the hike in three-month copper futures on the London Metal Exchange (LME). The market is currently observing a supply-demand mismatch as there are reports of a shortage of scrap and secondary rods while demand from certain regions in north India remains strong.

Domestic aluminium alloy ingot market sluggish w-o-w

The domestic market for aluminium ingots in India experienced a decline in the current week due to weak demand, resulting in limited transaction volumes. This trend further confirms the consistent downward movement in prices.

Similarly, prices of aluminium scrap in India have declined since the previous trading day, according to sources. Transaction volumes remained low as a result of sluggish demand, with buyers currently procuring small quantities only on a need-based basis.

Oil prices inch up

Brent oil futures as of today inched up by 0.57% to $73.62 per barrel. Similarly, crude oil WTI futures also rose by 0.64% to $68.71 per barrel.

Natural gas prices down

Prices of natural gas were recorded at $2.328/MMBtu at the time of publishing this insight, down 0.60% as against the last closing.

Dollar index

Base metal rally is expected amid weak US dollar and rising equities. The upward momentum is likely to persist until US headline inflation reverses, anticipated by August. Consequently, metal prices may exhibit volatility but remain on an upward trajectory until July's conclusion, as per latest report.

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 103.27. The index edged up 0.32% against the last session.

The rupee was recorded at 82.19 against the dollar, slightly appreciated against the last closing.