- Chinese copper premiums hold steady amid tight supply
- Oil prices rise amid India-Pakistan geopolitical tensions
Base metals prices on the London Metal Exchange (LME) remained range-bound d-o-d, with aluminium increasing by 1.13% to $2,385/tonne (t). Meanwhile, inventories at LME-registered warehouses remained stable d-o-d, with aluminium stocks dipping by 1.46% to 405,575 t.
COMEX market
Copper prices on the COMEX stood at $9,941/t, decreasing by 2.4% compared to the previous close.
Indian market overview
In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 792,000/t ex-Delhi. Aluminium Tense scrap prices increased by INR 1,000/t d-o-d, with ex-Delhi at INR 195,000/t and ex-Chennai at INR 196,000/t.
Market updates
Japan’s service sector rebounds, manufacturing remains weak
Japan’s service sector returned to growth in April, with the purchasing managers’ index (PMI) rising to 52.4, fuelled by improved demand and rising new business. This offset continued manufacturing weakness, pushing the composite PMI above 50. However, business confidence dipped, and inflationary pressures grew, with firms raising prices due to higher input costs.
Chinese copper cathode premiums steady amid tight supply
China’s copper cathode import premiums held firm d-o-d on 8 May, with Japanese and South Korean quotes at $130/t and non-EQ trades at $75-80/t. Limited post-holiday activity and tight supply, worsened by US-bound shipments and falling Chilean imports, continued to support elevated premiums, including a $200/t Chilean deal on 28 April.
Oil prices up d-o-d
Oil prices rose slightly following a previous 3% surge, driven by easing US-China trade tensions, a new US-UK trade deal, and tighter US sanctions on Iran. Additionally, rising geopolitical tensions between India and Pakistan are expected to increase regional fuel demand due to heightened military activity and disrupted air travel.
Brent crude futures were recorded at $63.19/barrel today. Meanwhile, WTI crude oil futures increased by 0.58% d-o-d to $60.26/barrel.
Natural gas prices rise
Natural gas stood at $3.62/metric million British thermal unit (MMBtu), up by 1.30% d-o-d.
Dollar index inches up
The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 99.69, up by 0.26% d-o-d at the time of reporting. The Indian rupee was recorded at INR 84.68 against the dollar.
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