Base metals prices show positive trends

Base metals prices on all major exchanges remained positive on 20 December, 2022 supported by weakening of the US dollar along with tight supplies amid falling inventories.

• LME's three-months aluminium contract went up by 0.5%, zinc rose 2.3%, copper edged up by 0.4% and nickel inched up by 4.1%, while lead increased by 0.9%.
  
  
• SHFE copper rose 0.55%, aluminium added 0.11%, and zinc gained 0.25%.
  
  
• MCX futures prices rose marginally, wherein nickel was up by 0.8% to INR 2,392/kg, lead up 0.4% to INR 186.30/Kg and copper rise 1% at INR 712.70/kg, aluminium was up 0.3% at INR 208.30/Kg, zinc up by 1.5% to INR 275.25/kg on the last trading day.
  
  

On the other hand, a fresh Covid-19 spurt in China, Japan and the US, ringing alarm bells globally, can again lead to uncertainity in the market, as per latest reports.

USA residential construction decreases

The USA's commerce department has released a report showing a decrease in new residential construction in November.

The report said housing starts fell by 0.5% to an annual rate of 1.427 million in November after tumbling below revised rate of 1.434 million in October.

The commerce department also said building permits plunged by 11.2% to an annual rate of 1.342 million in November after slumping by 3.3% to a revised rate of 1.512 million in October.

India
Domestic aluminium prices rose slightly yesterday due to material shortage in the local market.

The imported aluminium market observed limited activities and sporadic contracts have been concluded from the Middle East because a few sellers and buyers are on scheduled festive leave. Furthermore, the market is reeling under the pressure of continuous currency (INR) depreciation, which is raising the cost of materials.

LME stock levels mixed

Base metals stocks at LME-registered warehouses decreased by up to 1.2% in the last session. However, lead and nickel stocks remained firm.

Oil prices increase marginally

Brent oil futures was almost stable at $80 per barrel, while crude oil WTI futures went up by 0.70% at $76.09 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 104.13 at the time of publishing, up marginally by 0.15% against the last session.

The rupee was recorded at 82.73 against the US dollar, appreciating 0.10 paise against the previous closing.