Base metals prices on the Shanghai Futures Exchange (SHFE) and London Metal Exchange (LME) witnessed fluctuations on 13 July, 2022 even as the rising US dollar index put pressure on non-ferrous metals. US CPI inflation jumped 9.1% year-on-year in June, the sharpest increase in more than 40 years. In view of high inflation numbers, the market expects a historic one percentage-point (100 basis points) Fed interest rate hike later this month.
Base metals market performance:
LME copper slid 1.40%, aluminium fell slightly by 0.04%, lead gained nearly 1%, and zinc fell nearly 2%.
SHFE copper added 0.43%, aluminium rose 1.22%, lead shed 0.17%, and zinc fell 1.92%.
MCX aluminum rose 0.54%, zinc remained almost stable, lead gained 0.40%, while copper rose by 0.79%, d-o-d, on the last trading day.
Stock levels remain largely stable
LME warehouse stocks of all base metals fell marginally on a d-o-d basis on the last trading session.
Oil prices hovering around $100/barrel
Brent oil futures was at $99.44 per barrel and crude oil WTI futures declined to $96 per barrel at the time of reporting.
Oil prices are hovering below $100/barrel levels as there is the possibility of a rate hike by the US Federal Reserve to stem inflation and curb oil demand.
Currency exchange
The Indian rupee ended trading at 79.85 in early morning today as the USD strengthened to hit 20-year high levels, Steelmint learnt from sources.
Meanwhile, the dollar index, which measures the currency’s strength against a basket of six other currencies, gained to 108.42 at the time of reporting.
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