AIRLINK 73.75 Increased By ▲ 0.75 (1.03%)
BOP 5.30 Decreased By ▼ -0.05 (-0.93%)
CNERGY 4.32 Increased By ▲ 0.01 (0.23%)
DFML 27.50 Decreased By ▼ -1.05 (-3.68%)
DGKC 77.68 Increased By ▲ 3.39 (4.56%)
FCCL 20.54 Increased By ▲ 0.19 (0.93%)
FFBL 31.77 Increased By ▲ 0.87 (2.82%)
FFL 10.28 Increased By ▲ 0.22 (2.19%)
GGL 10.30 Decreased By ▼ -0.09 (-0.87%)
HBL 117.55 Increased By ▲ 1.58 (1.36%)
HUBC 134.50 Increased By ▲ 2.30 (1.74%)
HUMNL 6.72 Increased By ▲ 0.04 (0.6%)
KEL 4.15 Increased By ▲ 0.12 (2.98%)
KOSM 4.81 Increased By ▲ 0.21 (4.57%)
MLCF 38.86 Increased By ▲ 0.32 (0.83%)
OGDC 134.90 Increased By ▲ 1.05 (0.78%)
PAEL 23.39 Decreased By ▼ -0.44 (-1.85%)
PIAA 26.70 Decreased By ▼ -0.43 (-1.58%)
PIBTL 7.01 Increased By ▲ 0.25 (3.7%)
PPL 113.50 Increased By ▲ 0.70 (0.62%)
PRL 27.65 Decreased By ▼ -0.51 (-1.81%)
PTC 14.51 Decreased By ▼ -0.38 (-2.55%)
SEARL 56.04 Decreased By ▼ -0.38 (-0.67%)
SNGP 65.80 No Change ▼ 0.00 (0%)
SSGC 11.00 Decreased By ▼ -0.01 (-0.09%)
TELE 9.04 Increased By ▲ 0.02 (0.22%)
TPLP 11.80 Decreased By ▼ -0.10 (-0.84%)
TRG 69.25 Increased By ▲ 0.15 (0.22%)
UNITY 23.95 Increased By ▲ 0.24 (1.01%)
WTL 1.34 Increased By ▲ 0.01 (0.75%)
BR100 7,490 Increased By 55.8 (0.75%)
BR30 24,449 Increased By 228.8 (0.94%)
KSE100 72,038 Increased By 678.9 (0.95%)
KSE30 23,802 Increased By 235 (1%)

LONDON: Aluminium prices were set to end the week around 4% lower as fears of rapid US interest rate hikes dampened the outlook for economic growth and metals demand.

Prices, however, rose on Friday after the Wall Street Journal reported that some Fed officials may wish to slow the pace of rate increases soon, lifting stock markets and weakening the dollar. Earlier in the day, US 10-year bond yields hit their highest since 2007 and China’s yuan fell to its weakest against the dollar since 2008, making dollar-priced metals costlier for buyers in the biggest metals-consuming country.

Ample supply kept aluminium under pressure, with the delivery of around 250,000 tonnes into the London Metal Exchange’s (LME) warehouse system in the last 10 days.

Even though around 200,000 tonnes were earmarked for shipment out of the LME system, cash aluminium still traded at a discount to the three-month contract, suggesting that plenty of metal was available. Benchmark LME three-month aluminium was up 0.4% at $2,218 a tonne as of 1620 GMT.

Prices of the metal used in packaging, transport and construction have fallen around 45% from a peak in March as Covid-19 lockdowns in China and rapid interest rate hikes in the United States and elsewhere weakened the global economy. “Again, fears of interest rate rises dampened risk appetite,” a China-based futures trader said. “But the tight supply and solid demand could prevent it from any sharp fall.”

Analysts at Goldman Sachs said: “The drivers of the stronger dollar – weak Chinese property and European industry – are also the drivers of micro headwinds to metals’ end-demand.” “These headwinds will continue to depress base metals’ flat price returns until the Fed ends its tightening cycle,” they said. LME copper was up 1% at $7,636 a tonne, zinc fell 0.7% to $2,944, nickel was 1% lower at $21,965, lead slipped 4.1% to $1,896 and tin was down 3% at $18,770.

Comments

Comments are closed.