Base metals prices under pressure on surging dollar

Base metal prices on the London Metal Exchange (LME) and the Shanghai Futures Exchange (SHFE) showed a downward trend on the last trading day.

Weak global sentiments, a result of slowing Chinese demand, and monetary policy tightening in major global economies, is likely to have a negative impact on global non-ferrous metal demand in CY2022, which is weighing on metal prices.

RBI may raise repo rate by 50 basis points

The Reserve Bank of India (RBI) is likely to deliver a fourth consecutive policy rate hike this week, with a half-percentage point increase, joining the league of global central banks that are raising rates sharper than estimated to cushion inflation, as per reports.

Base metals market performance – 26 September

• SHFE copper fell 0.23%, aluminium gained 1.02%, lead slid 0.5%, and zinc dropped 0.58%.
• Meanwhile, LME’s three-month copper futures declined by 1.24%, nickel was down 5%, aluminum 1.20%, zinc decreased by 2.79% and lead was down 2.77%.
• MCX aluminum was down by 1.82%, nickel decreased by 3.58%, lead edged down 2.79%, copper fell 1.20% and zinc declined by 3%.

Stock levels mostly down

Most base metals stocks at LME-registered warehouses decreased by up to 3.21% d-o-d in the last session. However, copper stocks increased by 3.43%.

Oil prices fall

Brent oil futures fell to $84.72 per barrel and crude oil WTI futures were down 1.73% at $77.37 per barrel at the time of reporting.

Currency exchange

The Indian rupee was trading at 81.38, depreciating 0.99 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 at around 113.67, down marginally by 0.30% against the last session.