LME base metals apart from Lead traded higher last week as weakness in the DX post status quo in the latest FOMC statement boosted gains in the dollar denominated commodities. MCX base metals except Lead traded higher in line with international trends.
Nickel prices surged the most, by 4.7 percent last week, to the highest since 15th August, as an environment undersecretary said on Wednesday that a dozen more Philippine mines, mostly nickel projects, are in danger of being suspended in an ongoing environmental crackdown on the sector.
LME Copper prices jumped by 1.7 percent to $4855/tonne as a divided Federal Reserve left its policy interest rate unchanged and indicated that the committee will look into more data before taking the call. The Fed also projected a less aggressive rise in rates next year and in 2018, fanning expectations bond yields will stay low in the foreseeable future.
Besides, International Copper Study Group said global refined copper market for June showed an apparent production deficit of around 83,000 mt, due to strong Chinese apparent refined copper demand.
However, data from the National Bureau of Statistics showed Chinese Copper production climbed to 743,000 metric tons in August from 722,000 tons a month earlier and 663,000 tons last year.
MCX copper prices traded higher by 1.5 percent last week to close at Rs.327.8 per kg.