Base metals on the London Metal Exchange (LME) closed on a negative note yesterday, except nickel which was almost stable d-o-d, SteelMint notes.
Meanwhile, prices on the Shanghai Futures Exchange (SHFE) also closed lower.
China faces lockdown, again
One of China’s biggest cities, Chengdu, announced renewed lockdowns following fresh outbreaks of COVID-19.
Coupled with other bearish indications, the news of the lockdown is likely to have a marked negative impact on the base metals market.
India’s GDP grows 13% in Q1FY’23
On the other hand, India’s gross domestic product (GDP) for the April-June quarter (Q1) of the ongoing financial year 2022-23 rose 13.5%, as per provisional estimates released by the National Statistical Office (NSO) on 31 August.
Base metals market performance – 31 August
SHFE copper shed 1.05%, aluminium lost 0.16%, lead fell 0.27%, and zinc slid 0.02%.
LME 3-month copper fell by 0.80%, nickel remained stable, aluminium tumbled 1.34%, zinc decreased by 0.66% and lead fell by 1.86%.
MCX aluminium edged down by 1.20%, nickel remained almost stable, lead fell 0.98%, copper declined by 0.99%, and zinc dropped 0.63%.
Stock levels fluctuate
LME registered warehouse stocks of base metals rose marginally by up to 0.10% d-o-d. However, copper and aluminium stocks decreased by up to 2%.
Oil prices edge down
Brent oil futures fell by 0.79% to $94.88 per barrel and crude oil WTI futures decreased by 0.89% to $88.75 per barrel at the time of reporting.
Oil prices fell due to the continued lockdowns in China, which are impacting oil demand in the world’s second-largest economy.
Currency exchange
The domestic rupee tumbled to a new low at $80.11 against the US dollar in the beginning of the week. However, the currency traded at 79.57 against the greenback at the time of reporting, almost stable d-o-d.
The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered around $108.68, rising by 0.23% against the last session.
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