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Below is Weekly Base Metal Write Up by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd

The metals pack got off to a muted start as headwinds continued to weigh on the prices after doing well the previous week. However, the losses were contained after a surprising set of numbers was released by China. The Caixin PMI increased to 50.9 in May, indicating a return to growth compared to the contrasting official PMI.

The metals were further supported as investors hoped for additional stimulus measures as the country is likely to cut the reserve ratio and interest rates in the second half of this year along with supportive measures for the troubled property sector in order to support the economic growth in China after it failed to sustain a rebound.

The metals pack continue to weigh on the lower side, as the most recent data show that China's exports fell in May, as global demand weakened, dealing a further blow to China's recovery, which is still experiencing a rough patch. The May month saw imports and exports decline, but at a slower pace, as manufacturers battled to find demand abroad and local consumption remained low.  

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