Commodity Quote on Base Metals by Mr. Saish Sandeep Sawant Dessai, Angel One Ltd
Below is Commodity Quote on Base Metals Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd
With the conclusion of the August month, most of the base metals slipped lower, with Nickel and Zinc being the top losing metals. After a decent July month, which saw all the metals delivering positive returns, it did not take much time for things to change.
The metals trimmed the gains from the previous month as the tailwinds continued to weigh after concerns about slowing economic growth in China, the world's largest consumer of metals. China's manufacturing activity has contracted for the fifth consecutive month in August, as shown by an official survey, reflecting weak macroeconomic data that have weighed on metals prices. Additionally, the stronger U.S. dollar in August has made dollar-priced metals more expensive for holders of other currencies, further dampening demand.
The Chinese data has put pressure on officials to provide support to boost economic growth in the face of soft domestic and international demand, which would ultimately benefit metals demand.
This challenging economic environment is not limited to China, as global economic indicators raise concerns. Meanwhile, U.S. business activity has weakened, with demand in the service sector contracting. In the Eurozone, business activity has also declined significantly, particularly in Germany, Europe's largest economy, highlighting a broad-based economic downturn.
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