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

Non-ferrous metals prices on the London Metal Exchange (LME) witnessed mixed trends d-o-d. The three-month futures contracts for aluminium edged down 0.2% to $2,249/t, nickel inched up by 1.2% to $22,993/t, and copper rose by 0.5% to $8,558/t, zinc fell by 0.2% to $2,480/t and lead inched up by 0.6% to $2,130/t.

COMEX market

Copper prices on the Commodity Exchange market (COMEX) have seen a rise of 1% to $8,579/t from $8,513/t on the previous trading day.

Major global happenings

USA: Industrial production declines m-o-m

The US' industrial production experienced an unexpected 0.2% m-o-m decline. The drop was primarily influenced by the ongoing decrease in utilities output, which fell by 1.8% for the second consecutive month. Mining output also contracted by 0.4% in May, while manufacturing output showed only a marginal 0.1% increase following a notable 0.9% growth in April 2023.

Europe: ECB raises interest rates

The European Central Bank (ECB) raised interest rates by 25 basis points (bps) to reach a 22-year high and indicated the possibility of further rate hikes in the future, as per latest updates.

India: Non-ferrous scrap market

Marginal correction in aluminium scrap prices

Aluminium scrap prices in India experienced slight fluctuations, with changes of up to INR 500/t. The decrease can be attributed to bearish sentiments and limited trading activity impacting aluminium prices.

Domestic copper prices hold steady

Stable domestic copper prices in India came to the fore. Steady prices were observed for copper armature scrap and secondary CC rod. However, raw material shortages was observed in northern areas, possibly affecting supply. In the near-term prices are expected to remain within a range.

Zinc prices surge, lead drops

India's domestic special high-grade zinc prices moved up 4% w-o-w, benefiting from a weakening US dollar index. Conversely, lead prices fell by up to 3.5% due to sluggish demand. Zinc inventories in LME-registered warehouses reached a one-year high at 83,100 t.

Oil prices inch up

Brent oil futures as of today inched up by 0.26% to $75.87 per barrel. Similarly, crude oil WTI futures also rose by 0.24% to $70.79 per barrel.

Natural gas prices rise

Prices of natural gas were recorded at $2.568/MMBtu at the time of publishing this insight, up 1.38% as against the last closing.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 103.31. The index edged up 0.36% against the last session.

Indian rupee opened higher today, driven by weakness in the dollar index and optimistic US data indicating a less hawkish stance by the Federal Reserve.

The rupee was recorded at 81.88 against the dollar, appreciated against the last closing.