Opening bell: Base metals market update

Base metals prices on the Shanghai Futures Exchange (SHFE) and London Metal Exchange (LME) witnessed a downtrend amid weakening market sentiment.

The dollar slipped against the euro and European Central Bank policymakers are considering raising interest rates by a bigger-than-expected 50 basis points to tame record-high inflation.

The dollar and the euro are at the same level currently; however, the euro has fallen marginally against the dollar. The euro has slipped below the dollar for the first time in nearly 20 years as the war in Ukraine pushes the currency downwards.

Domestic and overseas consumption is sluggish, triggering market concerns about an impending economic recession, putting base metals under pressure, SteelMint learnt from sources.

Base metals market performance

LME 3-month copper fell 2%, aluminium lost 1.5%, lead contracted 0.6%, and zinc slid 1.9%.

SHFE copper fell 0.76%, aluminium lost 1.44%, lead shed 0.2%, and zinc slid 0.15%.

MCX aluminium was down 1.4%, zinc fell 1.2%, while copper lost 1.4% and lead fell marginally by 0.2%, d-o-d. Nickel prices inched down by 0.3% on the last trading day.

Stock levels mostly down

LME warehouse stocks of most base metals fell upto 2% on a d-o-d basis in the last trading session, while copper stocks rose by nearly 5%.

Oil prices show correction d-o-d

Brent oil futures fell 1.10% to $107 per barrel and crude oil WTI futures fell 1.37% to $100 per barrel at the time of reporting.

Currency exchange

The Indian rupee breached the significant exchange rate level of 80 against the US dollar in early trade today. However, It recovered to close at 79.90 at the time of reporting.

The US dollar index slipped to $106 at the time of reporting, indicating easing market sentiments in the near term.