Non-ferrous metals prices witness downtrend except zinc
Prices of non-ferrous metals on the London Metal Exchange (LME) trended down except zinc. Three-month aluminium futures decreased by 1% to $2,201/t, nickel dipped by 0.3%...
Prices of non-ferrous metals on the London Metal Exchange (LME) trended down except zinc. Three-month aluminium futures decreased by 1% to $2,201/t, nickel dipped by 0.3% to $21,182/t, while copper fell slightly by 0.3% to $8,574/t and lead gained 0.4% to reach $2,163/t. However, zinc witnessed a rise of 1.7% to $2,456/t.
COMEX market
Copper prices on the Commodity Exchange market (COMEX) dropped marginally by 0.3% to $8,579/t from $8,601/t in the previous trading day.
Major global happenings
Malaysia's inflation eases in May'23, while Japan's drop
Malaysia's annual inflation rate in May 2023 dropped to 2.8%, down from the previous month's 3.3% and below market expectations of 3%. This represents the lowest level since May 2022, primarily driven by a notable deceleration in transport prices.
On the other hand, Japan's annual inflation rate unexpectedly declined to 3.2% in May 2023 from April's three-month high of 3.5%, missing market expectations of 4.1%.
Bank of England rises interest rates
The Bank of England increased interest rates by 50 basis points, marking the 13th consecutive rate hike since November 2021. The new rate of 5.00% is the highest seen since September 2008.
Auction updates
- NALCO, one of India's leading aluminium producers, has scheduled an auction for 1,955 t of aluminium dross from its smelter in Angul, Odisha.
- The auction will be conducted on 3 July, 2023.
India: Non-ferrous scrap market
Domestic aluminium scrap prices unchanged d-o-d
Indian aluminium scrap prices remained stable d-o-d. Scrap prices had no impact of the price cuts by primary aluminium (ingots) producers. However, reduced activity is anticipated to lead to future price declines, prompting sellers to consider selling their inventory at discounted rates.
Copper prices firm d-o-d
Domestic copper prices remained firm d-o-d. LME copper futures showed a positive movement owing to limited supplies as China gets ready for a two-day holiday. However, the stable domestic market dynamics indicate that near-term copper prices may remain range-bound with no significant correction.
Domestic zinc, lead prices remain steady
India's domestic special high-grade zinc prices remained firm w-o-w. Similarly, lead prices also remained almost firm. The decline in zinc prices can be attributed to weak demand and an increase in supply. However, there has been reports of production cut in zinc by up to 50% in local markets, SteelMint observed.
Oil prices down
Brent oil futures as of today have inched down by 1% to $73.40 per barrel. Similarly, crude oil WTI futures also dipped by 1.05% to $68.78 per barrel.
Natural gas prices drop
Prices of natural gas were recorded at $2.599/MMBtu at the time of publishing this insight, down 0.35% 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 102.65. The index inched up by 0.26%.
The rupee was recorded at 82.02 against the dollar, depreciating marginally by 0.13% against the last closing.