Prices of non-ferrous metals on the London Metal Exchange (LME) witnessed varied trends. 3-month aluminium futures inched down by 0.7% to settle at $2,132/tonne (t), nickel prices rose by 1.8% to $16,508/t, copper prices edged up by 0.6% to $8,342/t, zinc prices inched down by 0.9% to $2,406/t and lead prices dropped by 0.5% to $2,018/t. Meanwhile, metals stocks at LME-registered warehouses witnessed mixed trends.

COMEX market

Copper prices on the Commodity Exchange (COMEX) were up by 1.6% to $8,337/t from $8,205/t against the previous closing.

India’s non-ferrous market

Aluminium

Domestic prices of aluminium scrap in India remained stable towards the last closing with limited activity in the market. LME futures fell 0.60%, at the time of reporting. The current availability of scrap in the local market has improved owing to measured operational ratios exerting downward pressure on prices, sources informed SteelMint.

Copper

Domestic copper prices inched down d-o-d yesterday. Market activity appears to be picking up slowly with 15 t copper traded at INR 657,000/t ex Delhi. Meanwhile, copper armature trade in Gujarat reportedly occurred at INR 645,000/t exw.

Zinc and lead

Zinc and lead prices dropped w-o-w, with zinc dropping 2.2% on sluggish market and a 3% decrease in HZL prices. Remelted lead prices dropped 1.5%, mirroring the 3.8% w-o-w downturn in HZL prices. Middle East-origin zinc diecast (5%), CIF Mundra also witnessed a 0.8% drop.

Global updates

Japan’s Q3 economic contraction deepens

Japan’s economy contracted more than initially reported in Q3, with a 2.9% annualised drop, driven by declining consumer and business spending. Real wages continued to fall in October, contributing to a prolonged economic slump and posing challenges for the Bank of Japan’s monetary policy adjustments.

U.S. job growth rebounds in Nov’23, but labour market shows signs of cooling

U.S. job growth likely accelerated in November, rebounding from strikes that affected the automotive and entertainment sectors. However, the underlying trend suggests a cooling labour market, with the Federal Reserve expected to maintain interest rates, dampening expectations of rate cuts in early 2024.

U.S. employers announced 45,510 job cuts in November, a 24% increase from October, led by retail and technology sectors. While the first y-o-y decrease since July, the year-to-date total is the highest since 2020, signalling potential labour market slackening, impacting the Federal Reserve’s inflation-targeting efforts.

China’s exports rise in Nov, indicating economic recovery

China’s exports grew 0.5% in November, the first increase in six months, signaling a potential recovery as factories attracted buyers with discounted pricing amid sluggish demand. Improved trade data aligns with positive trends in other Asian countries, indicating a broader regional economic uptick.

Declining LME aluminum stocks mask surplus amid weak western demand

LME aluminum stocks have decreased since August, reaching a headline inventory low of 443,000 t, the lowest since February. However, the aluminum price on the LME has slid alongside declining physical premiums, signaling a rising surplus in the Western market due to weak demand, despite robust Chinese imports.

Hindalco backs IAI’s green initiative, urges industry to join

Hindalco Industries, an aluminum manufacturer, has endorsed the International Aluminium Institute’s (IAI) new greenhouse gas (GHG) initiative, launched at COP28. The initiative, with 13 signatories, commits to transparently tracking and publicly reporting GHG reductions by member companies. Hindalco’s managing director, Satish Pai, urged other companies to join, emphasising the importance of companies in driving practical decisions for decarbonisation.

Oil prices rebound

Oil benchmarks were on track for their seventh consecutive weekly drop due to concerns about a surplus in global supply and diminished demand from China. However, prices rebounded today following a call from Saudi Arabia and Russia for additional OPEC+ members to participate in output reductions.

Brent oil futures went up by 1.57% to $75.21 per barrel. Crude oil WTI futures gained slightly by 1.43% to $70.33 per barrel, at the time of reporting.

Natural gas prices edge up

Prices of natural gas were recorded at $2.586/MMBtu, up by 0.04%.

Dollar index

The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 103.63, up slightly by 0.09% against the last closing.

At the time of reporting, the rupee was recorded at INR 83.38, depreciated marginally against the previous closing.