Commodity News
HeadLine : Base Metals Pulled Back as Market Sentiments Weakened
Date : Nov 26 2021
Shanghai base metals mostly trended lower on Friday morning amid weakened market sentiments. Meanwhile, their counterparts on LME performed similarly. LME metals closed mixed in the trading on Thursday. Copper fell 0.85%, zinc dropped 0.15%, aluminium rose 0.44%, and lead increased 0.37%. SHFE metals basically dropped in the overnight trading. Copper dropped 1.08%, aluminium fell 0.28%, zinc decreased 0.72%, nickel shed 1.95%, and lead rose 0.36%. The recent interest rate hikes in South Korea, New Zealand and other countries have triggered market concerns about global currency tightening. Goldman Sachs economists predict that the Fed will accelerate the tapering and interest rate hikes due to inflationary pressures. The market sentiments will be suppressed under the expectation of tightening liquidity, and the copper futures pulled back. The spot premiums dropped rapidly as the holders significantly lowered prices to sell off goods, but the downstream purchase were scarce. Supply declined, boosting market prices. Aluminium processing enterprises in Henan are affected by environmental protection issues. Although the impact is limited for the time being, it may extend to other regions. The short-term aluminium price trend is expected to remain strong.

Source: SMM
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