Non-ferrous metals prices trend down except nickel

Prices of non-ferrous metals on the London Metal Exchange (LME) dropped d-o-d except nickel. Three-month aluminium futures decreased by 0.6% to $2,160/t, while copper fell by 0.9% to $8,177/t, zinc dipped 0.3% to $2,341/t and lead was down by 1% to $2,051/t. In contrast, nickel prices were up by 2.9% at $20,634/t.

COMEX market

Copper prices on the Commodity Exchange market (COMEX) dropped by 1% to $8,117/t from $8,227/t in the last trading day.

India: Non-ferrous scrap market

Domestic aluminum scrap market

Domestic aluminium scrap prices in Delhi remained stable. Low transaction volumes were observed due to minimal demand. Aluminium futures stood at $2,154/t, reflecting a 0.8% decrease yesterday, at the time of reporting, while the market showed subdued activity and cautious sentiments.

Copper prices move downward

Domestic copper prices declined by up to 1.1% yesterday as futures dropped by $115/t to $8,166/t. Despite sufficient supply and sluggish demand during a weak season, sellers withheld their offers.

Domestic zinc prices drop, lead stable

India's domestic special high-grade zinc prices declined by up to INR 5,000/t w-o-w, yesterday. Conversely, lead prices remained relatively stable. The drop in zinc prices is a result of sluggish demand and an increased supply, compounded by HZL's decision to reduce zinc ingot prices by up to INR 8,000/t w-o-w.

Global updates

US GDP upgraded, strong retail spending and jobless claims drop

In the first quarter of 2023 (Q1 2023), the US' gross domestic product (GDP) grew at an annualised rate of 2.0%, revised upward from the previous estimate of 1.3%. The growth was driven by strong retail spending (+4.2%) and a notable increase in net exports (+7.8%). Additionally, jobless claims decreased by 26,000 to 239,000, indicating a resilient labour market.

China's manufacturing contracts, service sector decelerates

China's manufacturing activity contracted for the third consecutive month in June, albeit at a slower pace, with the official PMI reaching 49.0 compared to May's 48.8. The weak demand trend persisted. Moreover, China's non-manufacturing PMI dropped to 53.2 in June, indicating a deceleration in service sector growth.

Aurubis resumes operations at Pirdop copper smelter

Aurubis, Europe's largest copper producer and recycler, reopened its copper smelter and refinery in Pirdop, Bulgaria on 28 June. The temporary closure of the facility lasted 40 days for routine inspections and maintenance. The plant had an annual production of 225,000 tonnes (t) in the previous fiscal year.

Fatal accident halts work at Codelco's El Teniente mine

Tragically, an electrical technician lost his life in a fatal accident during the installation of a generator at Codelco's El Teniente mine in Chile. Work has been suspended, and an investigation is underway.

Oil prices up

Brent crude oil prices edged higher, marking the first monthly increase in 2023. The rise was supported by a notable decline in the US oil inventories, outweighing concerns of reduced fuel demand due to potential interest rate hikes. Brent crude futures for September delivery increased by 0.2% to $74.67.

Brent oil futures as of today have gained by 0.16% to $74.46 per barrel. Crude oil WTI futures also rose by 0.07% to $69.90 per barrel.

Natural gas prices dip

Prices of natural gas were recorded at $2.690/MMBtu, dropped by 0.41% at the time of publishing this insight.

Dollar index

The dollar index, which gauges the value of the greenback in a basket of six different currencies, hovered at 103.26. The index inched down by 0.08%.

The rupee was recorded at 82.04 against the dollar, stood largely stable against the last closing.