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Below is Weekly Quote on Base Metals Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd

Base Metals Outlook

With the exception of nickel, which closed nearly 5% down, most metal prices ended on a positive note, providing some relief from the base metals pack's persistent decline.

The continued pressure on the base metals saw Copper prices slip to two-month lows as prompted worries about a global recession, less demand, a stronger currency, and rising stocks in LME registered warehouses. The dollar index fell after reaching two-decade highs, which made the metals denominated in dollars less expensive for buyers using other currencies, overshadowing the bearish feelings.

After the LME announced that it would publish a discussion paper, taking the first step toward restricting new metal supplies from Russia, prices rose even further. Since a ban would result in metal shortages and more price increases at a time when global inflation is on the rise.

Outlook: Given the favorable developments coming out of China, which could increase the demand for metals, base metal prices are expected to remain high. However, the rise in the metals will most certainly be constrained by a strong dollar.

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