Commodity News
HeadLine : Base Metals Mostly Fell on Stronger Tapering Expectations
Date : Oct 13 2021
Shanghai base metals basically trended down amid the stronger expectations of Fed’s tapering the debt purchase. Meanwhile, their counterparts on LME mostly fell as well. LME metals mostly closed lower on Tuesday. Copper fell 0.81%, lead dropped 0.95%, and aluminium rose 0.79%. SHFE metals basically cruised down in the overnight trading. Copper dropped 0.7%, lead fell 1.2%, nickel lost 1.32%, and aluminium rose 0.96%. The Fed Vice Chairman Richard Clarida said that the conditions required for the reduction of debt purchase were basically met, which further consolidated the market expectations of the Fed’s purchase tapering in November. The US dollar index increased for the second consecutive day, weighing on the base metal prices. The import window of copper spot stayed open, and the inflow of copper is expected to increase. The power rationing extends across the country, and the operating rates in the downstream industries are expected to stand low. The spot premiums are hard to rise further after the contract delivery. As such, the holders are mostly selling the goods at higher prices this week. Shorts increased positions amid the plummeting LME lead. The easing power rationing and tighter supply weighed on the SHFE lead to fall from 15,000 yuan/mt.

Source: SMM
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