Non-ferrous metals prices rise, except lead

Except lead, the three-month futures contracts for various base metals showed an uptrend over a three-month period. Aluminium prices increased by 1.6% to $2,282/t, and nickel prices rose by 3.5% to reach $21,318/t. Copper prices also experienced a rise of 1.9% to reach $8,243/t, while zinc prices saw a slight increase of 0.8% to reach $2,267/t. However, lead prices declined by 0.6% to reach $1,999/t. Consequently, the market closed higher yesterday, reflecting the overall positive performance of the base metal sector.

COMEX market

Copper prices on the Commodity Exchange market (COMEX) have seen an increase of 2% to $8,183/t from $7,985/t on the previous trading day.

Major global happenings

Japan: Aluminum product demand dips in FY22, construction and exports hit hard

In the financial year of 2022-23 (FY 2022), the total demand for aluminum products, as reported by the Japan Aluminum Association, witnessed a quarter-on-quarter (q-o-q) decrease of 5.1%, reaching a total of 3,792,222 t. When analysing the product demand by application, the construction sector accounted for 444,069 t (a decrease of 4.3%). The export market experienced a decline to 194,220 t (down 12.8%), while cast products saw a decrease to 363,317 t (down 1.5%). However, forgings stood out as the only product category with an increase, reaching 55,529 t (up 11.5%).

South Korea: Q1 2023 sees modest growth in GDP, strong increase in GNI

In the first quarter of 2023 (Q1 2023), the real gross domestic product (GDP), experienced a 0.3% increase compared to the previous quarter, aligning with the initial estimate provided. Furthermore, the real gross national income (GNI) witnessed a more substantial growth of 1.9% during the same period, in comparison to the preceding quarter.

USA: Manufacturing PMI contracts for May'23

In the US, May, 2023's manufacturing PMI contracted for sixth consecutive month at 46.9%. New orders and prices indexes declined, while employment index showed an expansion. Production index increased to to 51.1%, supplier deliveries reached lowest level since March 2009, as per latest reports.

Non-ferrous auction scenario

• Kalpataru Power Transmission Limited (KPTL) invited bids for sale of 30 t of zinc dross and 25 t of zinc ash from Raipur, Chhattisgarh, with bid submission deadline before 15 June.
  
  
• Indian Steel and Wire Products (ISWP's) Jamshedpur unit planned to auction 22 t of zinc ash and 18 t of zinc dross on 5 June.
  
  

India: Non-ferrous scrap market

Copper: Prices rise as LME rebounds

India's domestic copper market experienced a rise in scrap prices due to the recovery of three-month futures on the LME to $8,200/t levels. Supply and demand in the industry are delicately balanced.Notably, there has been an unexpected surge in demand for secondary wire rods in the northern region.

Aluminium: Marginal fluctuations in aluminium scrap market

The Indian aluminium scrap market experienced fluctuations, with low trading volumes. There were reports of supply shortages in certain regions of northern India, particularly for extrusion grade scrap, which could potentially lead to price increases in the near future.

Oil, natural gas prices rise

Brent oil futures increased by 1.01% to $75.03 per barrel. Similarly, crude oil WTI futures also inched up by 0.91% to $70.78 per barrel.

Prices of natural gas were recorded at $2.171/MMBtu at the time of publishing this insight, up 0.6% 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 103.43. The index edged down 0.12% against the last session.

The rupee was recorded at 82.31 against the dollar, inching up by 0.17% against the last closing.