Non-ferrous metals prices rise, except nickel

All non-ferrous metals prices on the London Metal Exchange (LME) except nickel have witnessed an uptrend. The three-month futures contracts of aluminium increased by 0.3% to $2,237/t and lead edged up by 0.2% to $2,078/t. Prices of copper inched up by 2.2% to $8,135/t. On the other hand, prices of zinc rose by 3.1% to $2,343/t. However, nickel prices dipped by 0.3% to $21,162/t.

If we look into the COMEX market (Commodity Exchange), prices of copper have increased by 3% to $8,093/t from 7,875/t on the last trading day.

According to a report by Au Jibun Bank, Japan's manufacturing purchasing managers' index (PMI) increased to 50.8 in May, 2023. This is a positive development as it indicates an improvement in operating conditions for the first time since October 2022. In simpler terms, it means that the manufacturing sector in Japan is experiencing better conditions and growth compared to the previous month. It may be noted here that positive movements in PMI leads to rise in prices. This in turn, boosts the overall economy.

India: Non-ferrous scrap market

Copper scrap prices in India have recovered well by up to 1.2% d-o-d on the last trading day. The shortage of copper scrap material in northern India was noticed increasing its cost. However, secondary rods were experiencing higher demand in the market.

India's domestic aluminium scrap market has slowed down with less transactions seen on the last session. It seems that the NALCO's price hike has not had any significant impact on the scrap market. Market sources believe that near-term prices may remain range-bound.

Oil up, natural gas prices drop

Brent oil futures increased by 1.50% to $77.49 per barrel. Meanwhile, crude oil WTI futures rose by 2% to $73.28 per barrel.

Prices of natural gas were recorded at $2.431/MMBtu at the time of publishing this insight, down 1.8% as against the last closing.

Dollar index

The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 104.13. The index declined by 0.08% against the last session.

The rupee was recorded at 82.57 against the dollar, appreciated marginally by 0.20 paise against the last closing.