https://www.miningweekly.com
Aluminium|Copper
Aluminium|Copper
aluminium|copper

Copper, aluminium fall as markets brace for US rate hikes

14th September 2022

By: Reuters

  

Font size: - +

LONDON - Copper and aluminium prices fell on Wednesday as the threat of rising interest rates dampened the economic growth outlook, hammered global stock markets and held the dollar near 20-year highs.

Data on Tuesday showing higher-than-expected US inflation cemented expectations for a 75 basis points rate increase from the Federal Reserve next Wednesday, triggering a sell-off in risky, growth-linked assets that have already plunged in recent months. 

It also delivered the dollar its biggest one-day rise since March 2020, making dollar-priced metals costlier for buyers holding other currencies and putting pressure on other central banks to raise rates too. 

That pressure can be seen in China, the world's biggest metals consumer, where the central bank is expected to pause its monetary easing despite a weakening economy. Read full story

"Where's the growth?" said a trader in London, suggesting that metals prices may fall further.

"If the U.S. is raising rates faster than other countries, that will exert upward dollar pressure and all commodities priced in dollars will take a hit," said WisdomTree analyst Nitesh Shah.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was down 0.7% at $7 811.50 a tonne at 1114 GMT and aluminium CMAL3 was down 2.5% at $2 254.50 a tonne. Both have fallen around 20% this year.

Adding pressure on aluminium was a rise in inventories in LME-registered warehouses to 345 600 tonnes from 276,050 tonnes at the start of September, which has eased supply concerns. 

But aluminium stocks remain far below typical levels.

Copper inventories, meanwhile, have been falling in exchange and Chinese bonded warehouses. 

Tight supply pushed the premium for quickly deliverable cash copper over the three-month LME contract as high as $150 a tonne, the most since November 2021.

In other metals, LME zinc CMZN3 was flat at $3 227.50 a tonne, nickel CMNI3 fell 0.8% to $24 200, lead CMPB3 rose 0.2% to $1 956.50 and tin CMSN3 was down 1.3% at $21 100.

Edited by Reuters

Comments

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
Universal Storage Systems (SA)
Universal Storage Systems (SA)

South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 01 November 2024
Magazine round up | 01 November 2024
1st November 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.142 0.173s - 143pq - 2rq
Subscribe Now