Base metals futures on the London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE) moved down by up to 4.33% on 17 August. However, aluminium was an exception as it rose by 0.79% and 0.49% respectively after Norsk Hydro’s Slovalco – one of the world’s renowned primary producers – announced that it would stop primary aluminium production at its plant. The closure will be completed by the end of September 2022, as per the latest reports.The decision to terminate primary aluminium production at Slovalco comes in response to adverse framework conditions and high electricity prices. Slovalco is a fully consolidated aluminium smelter in Hydro, owned 55.3% by Hydro and the rest 44.7% by Penta Investments Groups.
Base metals market performance – 17 August
SHFE copper fell 1%, aluminium rose 0.49%, lead slid 0.43%, and zinc lost 2.64%.
LME 3-month copper was slightly down by 0.69%, aluminium rose 0.79%, lead down 2.13%, zinc down 4.33% and nickel fell by 1.57%.
Stock levels fluctuate
LME registered warehouse stocks of base metals fluctuated d-o-d with aluminium gaining by 0.45%, and nickel reducing by 0.55%.
Oil prices on downtrend
Brent oil futures fell 0.10% to $93 per barrel and crude oil WTI futures decreased to $87 per barrel at the time of reporting,
Currency exchange
The Indian rupee was at 79.44, depreciating by 0.23 paise against the US dollar. The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered at around $106.92 at the time of reporting.
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