Base metals prices continue to show diverse trends

Base metals prices on the London Metal Exchange (LME) and the Shanghai Futures Exchange (SHFE) closed on a volatile note on the last trading day.

The market expects that the Federal Reserve will deliver another 75-100 basis-point interest rate hike next week. Interest rates are going up as the battle against inflation continues.

The interest rates are likely to continue in this direction in the near future, at least until energy prices stabilise.

Base metals market performance - 14 September

• SHFE copper slid 0.56%, aluminium fell 1.13%, lead rose 0.47%, and zinc gained 0.08%.
  
  
• Three-month copper on the LME was down 0.83%, nickel fell 0.26%, aluminum was down 1.86%, zinc increased by 0.06%, and lead was up by 0.51%.
  
  
• MCX aluminium down by 1.3%, nickel decreased 1.4%, lead was up 1.1%, copper was marginally down 0.7% and zinc rose slightly 0.6%.
  
  

Stock levels down

Stocks at LME-registered warehouses were mostly down d-o-d on the last session by up to 1.75%. However, aluminum stocks increased by 3.81% yesterday.

Oil prices rangebound

Brent oil futures, on the other hand, were up marginally by 0.78% and were at $93 per barrel and crude oil WTI futures remained almost stable at $88.33 per barrel at the time of reporting.

Currency exchange

The Indian rupee was trading at 79.59, remained almost stable 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 109.87, up marginally by 0.19% against the last session.

The slowing crude demand has impacted one of the major importers, China. In addition, due to a series of Covid-19 lockdowns in China, this year, economic activity has nearly come to a halt.