LME and SHFE base metals closed mostly with losses amid geopolitical tensions.
Metals prices have also been weighed down by weak consumption from key market China, and surveys showed weak factory activity across the United States, Europe and Asia in July, adding to fears of a recession and gloomy demand outlook, SteelMint learned from sources.
However, it is hard to predict how this new geopolitical thread will develop in the upcoming days.
Base metals market performance – 2 August
SHFE copper dropped 0.37%, aluminium gained 2.06%, lead fell 0.72%, and zinc slid 1.44%.
LME 3-month copper fell by 1.29%, aluminium lost 1.03%, lead inched up 1.28%, zinc rose 0.98%, nickel decreased the most by 5.5%.
Stock levels remain volatile
LME warehouse stocks of base metals fluctuated on a d-o-d basis in the last trading session. Copper, nickel and aluminium gained by up to 2%, whereas zinc and lead stocks fell by up to 3.5% yesterday.
Oil prices slip
Oil slipped before the meeting of Organisation of Petroleum Exporting Countries (OPEC) which is to be held today. Brent oil futures fell 0.36% to $100.18 per barrel and crude oil WTI futures edged down by 0.44% to $94 per barrel at the time of reporting.
Currency exchange
The Indian rupee was at 78.87 against the US dollar. The dollar index, which gauges the value of the dollar in relation to a basket of six different currencies, hovered at around $105 at the reporting time.
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