Base metals prices increase d-o-d

Base metals prices on the London Metal Exchange (LME) and the Shanghai Futures Exchange (SHFE) showed an upward trend on the last trading day, rising by up to 3.5% d-o-d.

The LME was mulling a possible ban on Russian metal trading and LME metals soared yesterday. At the same time, the decline in the US dollar index also supported the rebound in metal prices.

The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has hiked the repo rate by 50 basis points to 5.90%, the fourth straight increase in the current cycle, in order to tame inflation.

As per market reports, there is speculation of a possible Russian aluminium ban from the LME platform. Russia accounts for around 6% of primary aluminium supply. Speculation led to an upswing in aluminium prices yesterday, which surged more than 3% till the end of the trading session.

Base metals market performance - 29 September

• SHFE copper rose 0.2%, aluminium gained 1.39%, lead advanced 0.2%, and zinc added 0.53%.
  
  
• Meanwhile, LME's three-month copper futures increased by 1.62%, nickel was up 2.49%, aluminum up 3.44%, zinc increased by 2.66% and lead was up 2.18%.
  
  
• MCX aluminum was up 2.73%, nickel increased by 4.95%, lead edged up by 0.80%, copper rose 0.97% and zinc increased by 1.30%. 

  
  Stock levels rise
  Most base metals stocks at LME-registered warehouses increased by up to 1% d-o-d in the last session. However, aluminium stocks decreased by 0.45%.
  
  

Oil prices down

Brent oil futures remained almost stable at $88.30 per barrel, while crude oil WTI futures were down 1.4% at $80.99 per barrel at the time of reporting.

Currency exchange

The Indian rupee was trading at 81.56, appreciating 0.24 paise 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 around 111.85, down marginally by 0.27% against the last session.