Base metals prices show positive trends

Base metals prices on all major exchanges moved higher in the last trading session on 6 January, 2023.

Three-month contract prices on the London Metal Exchange (LME) closed mostly in a positive range. Aluminium prices rose by 1.8%, zinc rose by 0.6%, lead decreased by 0.8%, copper edged up by 2.6%, and nickel rose by 1.2%.

SHFE copper edged up by 2%, aluminium rose 2.33%, lead dropped 0.57%, and zinc rose 0.91%.

MCX futures prices remained volatile on the last trading day. Nickel fell 0.8% to INR 2,450/kg, lead dropped 0.5% to INR 187.8/kg, copper rose by 1.7% to INR 733/kg, aluminium was up 1.3% to INR 204.8/kg, while zinc increased by 0.4% to INR 271/kg.

Europe inflation 

Stripping out food and energy prices, so-called core inflation in the EU rose to an all-time high of 5.2% in December. Slower growth in energy costs was the only reason for the moderation in the overall annual figure, which fell below 10% for the first time in four months.

Inflation was less than 10% as gas prices, one of the main drivers behind last year's record-breaking inflation, returned to pre-war levels.

LME stock levels decrease

Base metals stocks at LME-registered warehouses decreased by up to 7.0% in the last session today. However, lead stocks increased by 3% d-o-d.

Oil prices up

Brent oil futures were up 1% to $79 per barrel while crude oil WTI futures rose by 1.5% to $74.68 per barrel at the time of publishing this report.

Oil prices climbed on Monday as borders reopened in China, the world's top crude importer, boosting the outlook for fuel demand growth.

Dollar index

The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered at around 103.55 at the time of publishing this report, down 0.31% against the last session.

The rupee was recorded at 82.33 against the US dollar, appreciating 0.30 paise against the previous closing.