Volatility persists in LME's non-ferrous metals prices

Prices of non-ferrous metals on the London Metal Exchange (LME) continued to remain volatile d-o-d. Three-month aluminium futures have increased by 0.3% to $2,157/t, while nickel rose by 0.3% to $20,580/t. Copper gained by 1% to $8,398/t, zinc dropped by 1% to $2,365/t, and lead prices edged down by 0.3% at $2,092/t.

The stocks at the LME registered warehouse for all base metals dropped except lead. The stocks of copper fell by 4.5% to 69,700 t from 72,975 t. However, the stocks of lead rose marginally by 0.4% to 41,374 t.

COMEX market

Copper prices on the Commodity Exchange market (COMEX) increased by 1% to $8,337/t from $8,249/t in the last trading day.

India: Non-ferrous scrap markets

Aluminium market

Yesterday, India's domestic aluminium tense scrap prices dropped 0.6%, influenced by lower ingot prices. Buyers now acquire aluminium only as required due to the impact on local scrap prices.

Copper market

Yesterday, domestic copper prices in India increased by up to 1.8% (INR 13,000/t) compared to the previous trading day, driven by bullish sentiments. The limited availability of copper on the LME further supported prices. However, concerns around flagging demand still persist.

India's non-ferrous metal production dips

India's production of aluminium, copper, zinc and lead dropped m-o-m in April, 2023. Copper production fell by 24% to 330,000 t, followed by lead with 17,000 t (down 11%), zinc down by 9% at 70,000 t and aluminum dipped by 3% to 339,000 t, respectively.

Global updates

US: Manufacturing contracts in June

US manufacturing contracted in June, reaching levels last seen during the initial Covid-19 wave. Layoffs increased, while factory gate prices continued to deflate, providing a slight positive for the economy. The ISM manufacturing PMI dropped to 46.0, the lowest since May 2020.

US construction spending in May 2023 was estimated at $1,925.6 billion, up 0.9% from April and 2.4% from May 2022. Private construction spending was $1,513.2 billion, with residential construction at $857.4 billion and non-residential construction at $655.8 billion. Public construction spending was $412.4 billion.

Euro zone manufacturing contracts

Euro zone manufacturing activity contracted faster than expected in June as ECB policy tightening squeezed finances. Factory activity in all four major economies declined. The manufacturing PMI dropped to 43.4, its lowest since the Covid pandemic, and output hit an eight-month low of 44.2.

Oil prices largely stable

Oil prices were largely stable as supply concerns from Saudi Arabia and Russia's production cuts are balanced with mixed economic data indicating potential weak crude demand.

Brent oil futures today stood steady with a slight rise of 0.48% to $75.00 per barrel. Crude oil WTI futures also inched up by 0.47% to $70.12 per barrel.

Natural gas prices dip

Prices of natural gas were recorded at $2.696/MMBtu, down 0.48% 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 103.06. The index inched up by 0.07%.

The rupee was recorded at 81.97 against the dollar, depreciating marginally by 0.2% against the last closing.