Base metals prices continue to edge lower

Base metals prices on all major exchanges remained negative as the US dollar strengthened on 15 December, 2022.

LME's three-months aluminium contract went down by 2.6%, zinc fell 2.4%, copper edged down by 2.6%and nickel inched down by 0.2%, while lead decreased 1.3%.

SHFE copper lost 1.26%, aluminium slid 0.13%, lead gained 0.32%, and zinc dropped 0.29%.

EU Central Bank hikes rate

The European Central Bank slowed its record pace of interest rate hikes on Thursday to a half-point rate hike (0.5 basis points), joining the US Federal Reserve and other central banks around the world.

The Bank of England also dialled back to a half-point rate hike (0.5 basis points) indicating that more hikes are likely.

India's domestic market

Copper scrap and secondary wire rod enquiries declined slightly in the domestic market which led to local prices dropping marginally. Buyers adopted a wait-and-watch approach for more clarity on exchange prices. Zinc prices fell on falling futures followed by aluminium, while lead remained stable.

LME stock levels mixed

Base metals stocks at LME-registered warehouses decreased by up to 2.1% in the last session. However, nickel stocks rose by1.2% and lead was stable.

Oil price decreases

Brent oil futures fell by 1.75% at $80.89 per barrel, while crude oil WTI futures went down by 1.5% at $75.78 per barrel at the time of publishing.

Meanwhile, the dollar gained, which subsequently weakens oil demand as it makes the commodity more expensive for those holding other currencies to buy it.

Dollar index

The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered around 104.38, down marginally by 0.17% against the last session.

The rupee was recorded at 82.84 against the US dollar, depreciating 0.40 paise against the previous closing.