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

Non-ferrous metals prices on the London Metal Exchange (LME) witnessed a mixed trend. The three-month futures contracts of aluminium edged down 1.8% to $2,210/t, nickel up by 0.3% to $20,968/t, copper remained largely stable with a marginal rise of 0.05% to $8,339/t, zinc gained by 1.4% to $2,319/t and lead dipped by 0.1% to $2,026/t.

Consequently, the market closed yesterday with all base metals witnessing a volatility in prices.

COMEX market

Copper prices on the Commodity Exchange market (COMEX) stood stable at $8,272/t in the previous trading day.

Major global happenings

Australia: Economy faces slowdown

Australia's economy experienced its slowest growth in a year and a half during the last quarter, primarily due to the negative effects of high prices and increasing interest rates, which dampened consumer spending. Additionally, early indications suggest a further decline in economic activity as global growth decelerates.

According to data released by the Australian Bureau of Statistics, the country's real gross domestic product (GDP) increased by 0.2% in the first quarter, a decrease from the 0.5% growth seen in the previous quarter. The annual growth rate stood at 2.3%, also falling below the projected 2.4%.

South Africa: GDP shows modest growth

South Africa's GDP experienced a modest increase of 0.4% in the first quarter of 2023, rebounding from a 1.1% decline in the previous quarter, according to official data from Statistics South Africa. The manufacturing sector contributed significantly to the growth, expanding by 1.5% and adding 0.2 percentage points to the overall GDP growth.

Finance, real estate, and business services also saw a 0.6% increase, making a similar contribution. Sectors such as personal services and transport, storage, and communication also showed positive growth rates. Both exports and imports of goods and services rose, with an increased trade in various sectors.

China: Exports decline in May amid weak demand

China's export performance in May fell below expectations, with a larger contraction than anticipated, while imports also experienced a decline, albeit at a slower pace owing to subdued demand from international markets and weak domestic consumption.

Exports witnessed a significant y-o-y drop of 7.5%, representing the most substantial decline since January and a notable reversal from the 8.5% growth observed in April this year. Conversely, imports contracted by 4.5%, indicating a slower decline compared to the previous month's 7.9% decrease.

Auction updates

• TATA Metaliks Limited (DI and PI Division) has scheduled an auction for sale of 60 t of zinc dust and 5 t of zinc wire cutting pieces, from its Kharagpur Plant on 9 June, 2023.
  
  
• The auction will take place on the Mjunction platform.
  
  

India: Non-ferrous scrap market

Aluminium: Imported scrap prices volatile

Imported aluminium scrap prices in India have experienced significant fluctuations. Trades have been minimal this week, with lack of activity in the market. There is currently a shortage of aluminium scrap in the domestic market resulting in low to medium trade activities.

Copper: Prices rise d-o-d

Copper scrap prices in India's domestic market edged up by 1.4%. However, domestic sellers are actively attempting to destock their copper materials, while buyers anticipate another round of price declines in the near future.

Oil and natural gas prices dip

Brent oil futures as of today decreased by 0.67% to $75.78 per barrel. Similarly, crude oil WTI futures also inched down by 0.66% to $71.26 per barrel.

Prices of natural gas were recorded at $2.259/MMBtu at the time of publishing this insight, down 0.13% 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 104.16. The index inched up 0.03% against the last session.

The rupee was recorded at 82.51 against the dollar, depreciating marginally by 0.11% against the last closing.