Base metals prices on the London Metal Exchange (LME) witnessed varied trends with the highest change seen in copper prices. Similarly, the stocks at the LME registered warehouses saw mixed with the largest inflow seen in aluminium. Meanwhile, aluminium stocks in LME warehouses rose over 5% to 1.09 mnt
COMEX market
Copper prices on the Commodity Exchange (COMEX) dipped by 1% to $10,713/t against the previous closing.
India’s non-ferrous market
Domestic copper armature prices surged to INR 820,000/t ex-Delhi, mirroring LME’s 2-year high at $10,300/t. Secondary CCR rods hit INR 875,000/t, up 1.7%, with primary CC rods at INR 910,000/t, up 2.2% w-o-w. Imported scrap rose up to 4.8%. Buyers exhibit caution amidst high futures prices.
Global updates
China: Industrial output surges, retail slows
China’s April data showed robust industrial output growth at 6.7%, surpassing expectations, but retail sales disappointed with only a 2.3% rise, the slowest since December 2022. The property sector remains a drag despite government efforts. Policymakers face pressure to boost domestic demand amidst strong external demand.
U.S. Fed cautious amid positive indicators
Despite positive indicators including slower-than-expected consumer price growth and stagnant retail spending, the U.S. Federal Reserve remains cautious about rate cuts. Policymakers, including Fed Chair Powell, haven’t committed to a timeline for rate adjustments, emphasising the need for sustained evidence of declining inflation before considering changes to monetary policy.
U.S. factory production dips in April
U.S. factory production unexpectedly declined in April by 0.3%, primarily due to a drop in motor vehicle output. Manufacturing output fell 0.5% y-o-y amid challenges posed by higher borrowing costs. While some sectors saw gains, including primary metals and electronics, others like petroleum and coal products experienced declines. Overall industrial production remained unchanged.
India’s steel, aluminium exports set to rise amid US-China tariffs
US tariffs on Chinese goods present an export opportunity for India, particularly in steel, aluminium, and medical goods like facemasks and PPE. Bilateral trade disputes settled in 2023 led to eased import duties. Indian exports of steel and aluminium are expected to rise, but concerns remain over potential Chinese steel dumping.
Oil prices up
On Friday, oil prices rose, marking a weekly gain for global benchmark brent after two weeks of decline. This increase comes as there are indications of better global demand, supported by stronger economic signals from major consumers such as China and the United States.
Brent oil futures were up slightly by 0.41% to $83.61 per barrel. Crude oil WTI futures edged up by 0.25% to $79.43 per barrel at the time of reporting.
Natural gas prices gain
Prices of natural gas were recorded at $2.501/MMBtu, up by 0.32%.
Dollar index
The dollar index, which gauges value of the greenback in a basket of six different currencies, hovered at 104.57, slightly up by 0.11%.
The rupee was recorded at INR 83.47 against the dollar, depreciating marginally against the previous closing.