Base metals prices on the Shanghai Futures Exchange (SHFE) and London Metal Exchange (LME) witnessed constant fluctuation over the last few weeks and trade participants remained cautious amid downward correction. However, the closing spot and futures prices on LME diverged on 15 July, 2022 – the last trading day – compared with the previous day.
The base metals market has been under pressure for sometime in line with a sharp hike in interest rates and the strengthening US dollar.
Most US Fed officers supported a 75 basis point rate hike in July instead of 100 basis points, which eased the market sentiment to a certain extent, SteelMint understands.
Base metals market performance
LME copper slid 3% while 3-month prices rose 0.28%; aluminium remained stable while lead rose 6%; and zinc spot prices fell nearly 2% but the 3-month price rose 1.4%. Nickel fell the most by nearly 6% on the last trading day.
MCX aluminium was up 0.3%, zinc rose 2.1%, while copper gained 0.3% and lead rose 3%, d-o-d, on the last trading day; however, nickel prices fell nearly 3%.
SHFE copper contracted 4%, aluminium fell 1%, lead shed 0.2%, zinc fell 1.4% and nickel was marginally down by 0.2%.
Stock levels fluctuate
LME warehouse stocks of almost all base metals fell on a d-o-d basis in the last trading session, while zinc stocks fell most by 2.07%, while copper recovered marginally by 0.91%.
Oil prices show marginal improvement
Brent oil futures rose 2% and were at $103.59 per barrel and crude oil WTI futures were at $96.69 per barrel at the time of reporting.
However, investors are concerned about China’s rising COVID-19 cases that could lead to further reduction in fuel demand.
Currency exchange
The Indian rupee ended trading at 79.88 in the early morning today, nearing the level of 80/$ but lower than the lifetime low recorded last week.
Meanwhile, the dollar index, which measures the currency’s strength against a basket of six other currencies, dropped 0.24% to 107.8 at the time of reporting.
Leave a Reply