Base metals prices continue to fluctutate

Domestic base metals prices witnessed volatile trends on the last trading day. Prices of aluminium and nickel moved lower by up to 5.6% on the week amid slowing global growth and rising interest rates. However, other base metals (copper, zinc and lead) showed a positive trend by rising up to 1.7%.

OPEC to consider production cut

OPEC+ will consider an oil output cut of more than a million barrels per day (bpd) next week, as per latest reports.

The meeting will take place on 5 October against the backdrop of falling oil prices and months of severe market volatility, which prompted top OPEC+ producer Saudi Arabia to declare that the group could cut production. Prices have, nevertheless, fallen sharply over the last month due to fears about the global economy and a rally in the US dollar after the Federal Reserves raised rates.

China’s official manufacturing PMI rises

The country’s official manufacturing Purchasing Managers’ Index (PMI) in September stood at 50.1. The manufacturing PMI in September increased by 0.7% from August.

Base metals market performance – 30 September

• SHFE copper rose 0.2%, aluminium gained 1.39%, lead advanced 0.2%, and zinc added 0.53%.
• Meanwhile, LME’s three-month copper futures remained almost stable, nickel was down 5.6%, aluminium fell 1.6%, zinc increased by 1.3% and lead was up 1.7%.
• MCX aluminium was down 2.4%, nickel increased by 1.7%, lead edged up by 1.1%, copper remained almost stable, and zinc increased by 0.5%.

Stock levels volatile

Most base metals stocks at LME-registered warehouses increased by up to 1.8% d-o-d in the last session. However, aluminium and zinc stocks decreased by 0.6%.

Oil prices rise

Brent oil futures remained almost stable at $87.23 per barrel, while crude oil WTI futures were up 2% at $81.60 per barrel at the time of reporting.

Currency exchange

The Indian rupee was trading at 81.73, depreciating 0.17 paise against the greenback at the time of reporting.

The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered around 112.24, up marginally by 0.11% against the last session.