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Restricted supply following renewed environmental restrictions and stagnant downstream demand in China has kept industrial metals on the MCX under pressure. That, coupled with the ongoing disruption in China’s property sector which is a major consumer of industrial metals further pressured market sentiments.

Enforcement of production limitations and power usage curbs hampered the domestic demand for industrial metals in China which further clouded the outlook for the entire pack and pushed prices lower in the beginning of the week.

However, a tight supply market given the withdrawal of inventories across exchanges and falling output in China might levy some support for the base metal prices. Reports stating that China’s central bank will lend money for banks to roll over the debts of developers in an attempt to cool down issues in the property sector is also expected to help the Base metal prices in the week ahead.

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