Non-ferrous metals prices show mixed trends

Prices of non-ferrous metals on the London Metal Exchange (LME) remained volatile for yet another day. Three-month aluminium futures decreased by 0.3% to $2,223/t, nickel dipped by 3.6% to $21,238/t, while copper increased slightly by 0.6% to $8,602/t. Zinc witnessed a rise of 2.4% to $2,416/t, while lead gained 1.3% to reach $2,172/t.

COMEX market

Copper prices on the Commodity Exchange market (COMEX) increased by 1% to $8,601/t from $8,557/t the previous trading day.

Key developments

India: Aluminium Zorba scrap imports hit 8-month high

India witnessed a 13% m-o-m increase in aluminium scrap imports to 159,855 t in May, with Zorba grade reaching an eight-month high of 49,784 t. The northern region recorded the highest imports (69,878 t), followed by western (45,598 t), southern (36,080 t) and eastern India (6,329 t). Leading exporters were the US (46,100 t), UK (13,951 t), and Saudi Arabia (12,445 t).

Global refined copper production rises

Preliminary data from the International Copper Study Group (ICSG) suggests that global copper mine production grew by approximately 2.5% in the first four months of 2023. Additionally, refined copper production rose around 8% during the same period.

UK inflation soars

Inflation in the UK remained at a high of 8.7% in May, surprising expectations of a slowdown. Core inflation reached its highest level since 1992, as per reports. This puts pressure on the Bank of England, which is anticipated to raise interest rates for the 13th consecutive time.

India: Non-ferrous scrap market

Aluminium market remains largely stable

The domestic aluminium alloy ingot market in India this week remained stable amid moderate supply and balanced supply-demand. Reduced production in north India led to western India-based producers offering ADC12 material to north Indian buyers at competitive prices. Domestic scrap prices remained rangebound, with tense experiencing a drop and utensil prices remaining steady.

Copper prices inch up

Domestic copper prices rose by 0.6% d-o-d. Prices witnessed a temporary rise after China announced a new round of stimulus measures, which include interest rate reductions and potential allocation of funds towards infrastructure and property sectors.

Oil prices down

Brent oil futures as of today have inched down by 0.57% to $76.70 per barrel. Similarly, crude oil WTI futures also dipped by 0.54% to $72.14 per barrel.

Natural gas prices drop

Prices of natural gas were recorded at $2.594/MMBtu at the time of publishing this insight, down 0.12% 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 102.08. The index remained largely stable.

The rupee was recorded at 81.91 against the dollar, appreciating marginally by 0.19% against the last closing.