Base metals on the London Metal Exchange (LME) closed lower yesterday, falling by up to 6% d-o-d.
Prices on the Shanghai Futures Exchange (SHFE) also closed lower, as COVID-19 restrictions in top metals consumer, China, added to demand worries, with prospects of aggressive interest rate hikes in the US weighing on sentiment.
On the other hand, Fed officials are expected to raise the rate by a half point or 0.75 points at their next meeting, which will be held from 20-21 September, 2022.
Base metals market performance – 1 September
SHFE copper shed 2.02%, aluminium inched up 0.08%, lead fell 0.13%, and zinc slid 3.82%.
Three-month copper on LME fell by 2.62%, nickel slid 5.14%, aluminium tumbled 2.71%, zinc decreased by 5.78% and lead fell by 2.51%.
MCX aluminium edged down by 1.45%, nickel fell 1.37%, lead fell 1.18%, copper declined by 2.40%, and zinc dropped 5.79%.
Stock levels down
Stocks at LME-registered warehouses fell by up to 4% d-o-d. However, zinc stocks increased by 0.13%.
Oil prices edge up
Brent oil futures remained almost stable at $93.73 per barrel and crude oil WTI futures increased by 1.59% to $87.99 per barrel at the time of reporting.
Crude oil futures traded higher on Friday ahead of the OPEC meeting, known as OPEC+, on 5 September. Market participants feel that a decision could probably be taken on production cuts, SteelMint learnt from sources.
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