Base metals market update

Global base metal prices recovered on major exchanges like LME, SHFE, and MCX considering spot as well as futures prices, SteelMint data shows. Although minor fluctuations were seen during the previous closing, the overall price range seems to have improved, which is being reflected in the Indian market as well.

Trader sources informed they were waiting for the federal reserve announcement, with rates likely to be raised either by 50 basis points or 75 basis points in a day or two, and expect price stability without any major change in the near-term.

However, a few market participants foresee the next interest announcement by the federal reserve could play a key role in altering the market dynamics.

Further, supply chain disruption may ease slightly in the near-term considering the fact that Libya's oil corporation may extend production capacity to 1.2-1.3 million barrels per day (bpd) as against current production of 860,000 bpd.

Evolving interest rates may upset fuel demand and marginally ease supply constraints from the North African countries that could rationalise real-term values, specifically for the commodity market.

Base metals market performance - 25 July

SHFE copper jumped 0.45%, aluminium lost 0.11%, lead rose 0.07%, and zinc fell 0.75%.

LME 3-month copper rose marginally by 0.36%, aluminium lost 2.71%, lead moved down 0.64%, and zinc slipped 0.23%. However, nickel prices increased by 0.48%.

Stock levels mostly down

LME warehouse stocks of most base metals fell by nearly 2% on a d-o-d basis in the last trading session. However, zinc stocks recovered by 0.07% yesterday.

Oil prices move up

Brent oil futures rose 1.71% to $101.9 per barrel and crude oil WTI futures edged up by 1.57% to $98.22 per barrel at the time of reporting.

Currency exchange

The Indian rupee opened at 79.77 against the US dollar, registering a decline of 7 paise over the last closing.

The US dollar index slipped to $106.41 at the time of reporting.