Base metals volatility continues

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

EU to take action for rising energy prices

The situation on the European gas and electricity market has worsened dramatically. Prices are exploding as a consequence of Russia's war against Ukraine.

For these reasons, European Union energy ministers are meeting on 9 September 2022 for what the official invitation calls "exchanges of views", as per reports.

The European Commission wants a mandate to prepare interventions in the electricity and gas markets.

Therefore, against the background of the State of the Union address of 14 September and ahead of the Extraordinary Energy Council Meet of 9 September, the European Union will urgently introduce EU-wide measures aimed at limiting the price of natural gas and also measures designed to disconnect electricity prices from gas prices.

Base metals market performance - 7 September

SHFE copper lost 0.43%, aluminium gained 0.05%, lead added 0.27%, and zinc fell 0.71%.

Three-month copper on LME inched down by 0.79%, nickel remained almost stable, aluminium down 1.11%, zinc decreased by 1.36%, and lead rose by 0.48%.

MCX aluminium down by 1%, nickel fell 1.23%, lead down 0.48%, copper edged down 0.56%, and zinc fell down 1.75%.

Stock levels down

Stocks at LME-registered warehouses dropped by up to 2.55% d-o-d on the last session. However, aluminium stocks increased marginally by 0.36%.

Oil prices edge up

Brent oil futures increased by 0.55% to $88.55 per barrel and crude oil WTI futures rose 0.79% to $82.59 per barrel d-o-d at the time of reporting.

Currency exchange

The Indian rupee was traded at 79.69, appreciating slightly by 0.24 paise against the greenback at the time of reporting.

In addition, the dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered at around 109.60, down marginally by 0.22% against the last session.