Base metals prices remain largely positive

Base metals prices on all major exchanges remained largely positive on 21 December, 2022.

London Metal Exchange's (LME's) three-months aluminium contract went up by 0.8%, zinc fell by 2.4%, copper edged up by 0.5% and nickel up by 4.4%, while lead increased by 1.5%.

Notably, LME warehouse stocks of the galvanising metal totalled 36,525 tonnes, the lowest amount in 2022, as per data maintained with Steelmint. Moreover, a fall in supply of zinc reflected an unprecedented year of smelter problems, particularly in Europe.

SHFE copper rose 0.38%, aluminium added 0.48%, lead jumped 1.35%, and zinc fell by 0.09%.

MCX futures prices remained volatile, wherein nickel was down by 1.4% to INR 2,360/kg, lead up 1.6% to INR 189/Kg and copper rose 0.4% at INR 715.25/kg, aluminium was down 0.4% at INR 208.55/Kg, zinc down by 1.9% to INR 269.30/kg on the last trading day.

Surging Covid-19 infections in China led to uncertainties in market activities and raised concerns over near-term demand outlook.

The US

Existing-home sales fell for the tenth consecutive month to a seasonally adjusted annual rate of 4.09 million in the US. Sales slipped 7.7% in November, 2022 from October and 35.4% from the previous year.

The median existing-home sales price rose to $370,700, an increase of 3.5% from one year ago. The inventory of unsold existing homes retreated for the fourth straight month to 1.14 million at the end of November, or the equivalent of 3.3 months' supply at the current monthly sales pace.

India

Indian copper market saw marginal rise in prices today amid positive LME futures, also Indian Rupee's continuous depreciation compelled buyers to become cautious which is raising the cost of materials. Aluminium scrap (of all grades) and lead prices saw firm levels yesterday, meanwhile zinc was marginally up on yesterday's trade.

LME's stock levels mixed

Base metals stocks at LME-registered warehouses decreased by up to 1.5% in the last session. However, aluminum was up by 0.6% and lead stocks remained firm.

Oil prices rise

Brent oil futures was up 1.5% at $82.6 per barrel, while crude oil WTI futures went up by 2.7% at $78.73 per barrel at the time of publishing this report.

Dollar index

The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered around 103.86 at the time of publishing this report, was down marginally by 0.29% against the last session.

The rupee was recorded at 82.72 against the US dollar, almost stable against the previous closing.