Non-ferrous metals prices witness decline d-o-d

Prices of all non-ferrous metals on the London Metal Exchange (LME) dipped d-o-d. The three-month futures contracts for aluminum, nickel, and zinc dropped by 2% and lead fell by 1%. Meanwhile, nickel stood largely stable with a negligible drop of 0.3%.

UK composite PMI contracts in May

The UK composite purchasing managers' index (PMI) dropped to 53.9 in May, down from April's 54.9, reflecting a contraction in manufacturing and slower growth in services. Analysts anticipated a reading of 54.1. The PMI level above 50 indicates an expansion. Private sector activity saw its "lowest growth" since March which can be attributed to subdued customer demand impacting new order levels.

USA's business activity hits 13-month high in May

USA's business activity surged to a 13-month peak in May, primarily driven by robust growth in the services sector. The flash U.S. Composite PMI Output Index, tracking both manufacturing and services, reached 54.5 this month, the highest level since April 2022. Despite concerns of a possible recession, this marks the fourth consecutive month with a PMI above 50, signalling an ongoing growth in the private sector.

India: Non-ferrous scrap market

Imported aluminium scrap prices in India experienced significant fluctuations recently. Certain grades of aluminium scrap witnessed a notable increase by up to $55/t this week. However, there were some specific grades that experienced a fall by up to $30/t compared to last week.

Price of tense scrap from the US is reasonable when compared to the UK Zorba 95/5 or 94/4 along with domestic tense price in the northern region, which was INR 163,000/t. However, after considering all the calculations, imported landing price amounts to INR 159,000-160,000/t.

Domestic copper armature scrap prices dropped by 1.5% d-o-d today to INR 674,000/t exy-Delhi due to low demand. Secondary rod prices also fell by 1.1% to INR 714,000/t while primary rod prices decreased by 1.4%. LME futures have been on a declining trend, this has weighed on domestic prices.

Oil prices inch up, natural gas drop

Brent oil futures increased by 2% to $77.65 per barrel. Similarly, crude oil WTI futures rose by 1% to $73.8 per barrel.

Prices of natural gas were recorded at $2.34/MMBtu at the time of publishing this insight. Prices were down by 8% 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 103.38. The index fell by 0.11% against the last session.

The rupee was recorded at 82.72 against the dollar, appreciating 0.11% against the previous closing.