Commodity News
HeadLine : Most Base Metals Prices Declined as US Dollar Rose for Two Consecutive Days
Date : Sep 28 2021
Most of the base metals prices fell on Monday evening as the US dollar has risen for two consecutive days. LME copper dropped 0.05%, aluminium edged down 0.89%, lead rose 0.12% and zinc fell 0.53%. SHFE base metals dropped across the board in the overnight trading. Copper shed 0.1%, aluminium decreased 1.33%, lead dropped 0.31% and zinc lost 0.63%. Fed Chairman Powell said yesterday that supply problems have caused prices to rise and employment problems did not meet their targets. The situation may take longer than expected. His remarks were biased, causing the US dollar index to fall and copper prices rose during the day. However, the market still called for a reduction in the purchase of assets in the United States as early as November. Boosted by the rise in US Treasury yields, the US dollar strengthened at night and SHFE copper dropped slightly. In terms of fundamentals, under the current situation of power rationing, the market is more concerned about downstream demand. The news of the fourth round of 30,000 mt copper reserves offered by the SRB was released yesterday, which affected market sentiment to a certain extent. At present, the performance of copper prices is relatively weak. In terms of spot markets, downstream producers in Jiangsu will cut output during the National Day holidays. The high pre-holiday premium has increased the willingness of sellers to generate cash and turn cautious. 

Source: SMM

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