MARKET VIEW - Base Metals Decline Amid Rising Dollar and Risk-Averse Sentiment

Forex - Base metal prices mostly declined under the pressure of risk aversion sentiment due to a strengthening dollar and escalating conflict in the Ukraine-Russia war. At the London Metal Exchange (LME), three-month copper fell by 0.1% to $8,999 per ton at 06:34 GMT, while December copper at the Shanghai Futures Exchange (SHFE) decreased by 0.9% to 73,800 yuan per ton ($10,184.65).

The escalation in the Russia-Ukraine war is shaking risk appetite in financial markets, making metals expensive due to the stronger dollar. Analysts indicated that risk aversion stemming from the war would harm base metals and that the dollar's rise is also exerting pressure on these metals.

According to analysts, there is still no good news on how China will offer more stimulus, and Bitcoin is diverting attention away from commodities. The election of Donald Trump as U.S. president has increased expectations that his administration will create a friendly regulatory environment for cryptocurrencies, as Bitcoin closed above $100,000 for the first time yesterday.

At LME, aluminum traded down by 0.4% at $2,620.50 per ton, nickel increased by 0.1% to $15,725 per ton, zinc rose by 0.4% to $3,003 per ton, lead gained 0.5% to $2,009 per ton, and tin increased by 0.8% to $28,980 per ton.

At SHFE, aluminum fell by 1% to 20,520 yuan per ton, nickel dropped by 1.5% to 125,390 yuan per ton, lead decreased by 0.3% to 16,920 yuan per ton, tin declined by 0.9% to 241,240 yuan per ton, and zinc increased by 0.2% to 25,245 yuan per ton.