Most SHFE and LME base metals closed with losses on 11 July 2022 as the US dollar improved on expectations that the Fed would raise rates more sharply than other central banks, with the dollar index hitting 108.19 on 12 July, the highest since October 2002.
As July and August are typically the off-season for the base metal industry, resurgence in Covid-19 infections also further suppressed the demand. It is expected that spot premiums will be under pressure in the short term.
Meanwhile, aluminium demand was also weak due to the slow real estate sector.
Base metal market performance on last trade-
LME copper slipped 2.13%, aluminium dipped 2.72%, lead gained 1.27%, and zinc fell 0.87%.
SHFE copper slid 1.36%, aluminium lost 1.49%, lead improved 1.01%, and zinc dropped 0.38%.
Stock
The LME warehouse stocks of all base metals on a d-o-d basis plunged on last trading session. Moreover, aluminium stocks fell 3,350 tonnes (t) to 343,825 t d-o-d on 11 July.
Oil down on increasing Covid cases in China
Brent oil futures dipped 1.56% to $105.43/barrel and crude oil WTI futures fell 1.67% to $102.34/barrel at the time of publishing this article. Oil went down as demand concerns spurred as China discovered cases of Covid-19, along with the growing fear of recession.
Currency exchange
The Indian currency ended trading at 79.63 against the US dollar in early morning today.
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