IGI Logo

"Weekly Base Metal Report" by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd

The industrial metals Aluminium, Zinc, and Copper ended the week on a higher note, with Aluminium being the top gainer, gaining 4.3 percent.

Because of high electricity prices in most European countries, aluminum and zinc producers are either closing their smelters or reducing the production of the metals. Another aluminum producer, Speira, is considering cutting production at its German smelter to half capacity, while another smelter Sunndal goes on strike.

Another tailwind was the top consumer China, which cut its benchmark lending rate this week in an effort to help its real estate sector. This move raised hopes for a rebound in metals demand.

The US dollar index, which is nearing all-time highs, has kept the gains in check, making dollar-denominated commodities more expensive for buyers holding other currencies.

Outlook: We expect copper to trade lower towards 669 levels, a break of which could prompt the price to move lower to 659 levels.

Above views are of the author and not of the website kindly read disclaimer