Commodity News
HeadLine : Base Metals Fell across the Board amid Thin Trade
Date : Sep 30 2021
Shanghai base metal fell across the board on Thursday morning amid the sluggish transaction on the last trading day before the National Day long holiday. Meanwhile, their counterparts on LME trended mixed. LME metals all closed lower in the trading on Wednesday. Copper dropped 1.03%, aluminium fell 0.65%, lead shed 1.13%, and zinc decreased 0.82%. SHFE metals performed similarly in the overnight trading. Copper shed 0.7%, aluminium dropped 0.7%, lead fell 0.76%, and zinc lost 0.24%. On the macro level, although the US government is at a deadlock on the debt ceiling issue, the US dollar has not been affected. On the contrary, due to the sharp rise in US bond yields and the stronger market expectation of Fed’s reduction of asset purchases from November and the interest hike in end-2022, the US dollar index performed strongly, hitting a one-year high again last night. Copper futures fell back. In the spot market, most of the market transactions will come to an end today. The market participants will be wait-and-see with the risk aversion sentiment. The impact of power rationing has deepened in Jiangsu, Guangdong, and Shandong, where aluminium processing companies are concentrated, hurting aluminium consumption and resulting in an increase in aluminium inventory. H

Source: SMM
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