Base metal prices on all major exchanges remained volatile on 12 December, 2022.
- LME’s three-months aluminium contract fell slightly by 2% while nickel rose 0.3%, copper went down 2%. Zinc inched up by 0.9%, while lead decreased by 0.9%.
- SHFE copper fell 0.73%, aluminium lost 1.64%, lead slid 0.19%, and zinc added 0.59%.
Highlights
- Britain’s economy shrank in August-October 2022 on rampant inflation and rising interest rates. Gross domestic product, the broadest measure of economic activity, fell by 0.3% in the period when compared to the quarter ending July, as per reports.
- Global miner Anglo American has recently cut its copper production estimate for 2023 because of deteriorating ore grades at its Chilean mines. The London-listed miner expects its copper mines to produce between 840,000-930,000 tonnes (t) in 2023 compared with a prior estimate of 910,000 t.
- The US Central Bank’s Federal Open Market Committee (FOMC) meeting begins today, where the Federal Reserve is expected to increase interest rates by 50 bps. The two-day meeting, which will conclude on Wednesday, will show more clearer picture about the inflation and market movements.
LME stock levels mixed
- Base metals stocks at LME-registered warehouses decreased by up to 1.3% in the last session. However, aluminium stocks increased by 6.4%.
Oil price rises
- Brent oil futures rose by 3% at $79 per barrel, while crude oil WTI futures were up 3% at $74 per barrel at the time of publishing.
Dollar index
- The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered at around 105.14, down marginally by 0.11% against the last session.
- The rupee was recorded at 82.63 against the US dollar, almost stable against the previous closing.
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