Most base metals climb on supply concerns, demand uncertainty

23rd August 2022 By: Reuters

BEIJING - Prices of most base metals moved higher on Tuesday, as supply-and-demand worries amid an energy crisis in Europe and China lent some support to the market against the backdrop of reduced stockpiles.

The most-traded September zinc contract on the Shanghai Futures Exchange SZNc1 was up 2% at 25 425 yuan ($3 711.73) a tonne, as of 02:13 GMT.

ShFE nickel SCFcv1 was up 0.8% at 177 600 yuan a tonne, following a 4.8% jump in the previous day, as speculation appetite emerged after Indonesian President Joko Widodo Indonesia said the country was considering imposing a tax on nickel exports this year to boost revenue in an interview with Bloomberg News last Thursday. 

Officials in the nickel-rich country have previously said this could come as soon as the third quarter. 

Elsewhere, ShFE lead SPBc1 nudged up 0.2% at 15 075 yuan a tonne, copper SCFc1 held at 62 860 yuan a tonne, while tin SZNc1 lost 0.4% to 200 950 yuan a tonne.

Demand uncertainty amid fears of global recession and interest rate hikes in the United States and Europe weighed on investors' risk appetite.

The US dollar has found support in recent sessions as several Federal Reserve officials reiterated an aggressive monetary tightening stance ahead of the Fed's Jackson Hole, Wyoming, symposium this week.

A strong dollar typically places downward pressure on commodity prices as it becomes more expensive for non-US holders to buy.

Three-month copper on the London Metal Exchange CMCU3 edged up 0.1% to $8 038 a tonne, following a decline on Monday. 

LME aluminium CMAL3 gained 0.4% to $2 399 a tonne, zinc CMZN3 rose 0.4% to $3 509.50, lead CMPB3 was up 0.4% to $2 021.