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

After a negative week, the base metals pack witnessed a rebound, as most of the metals ended higher, except for Zinc, which continued to end on a lower note, down nearly 2 percent.

Due to a weaker currency and predictions of rising demand in China as a result of government-promised economic stimulus measures, metals like copper were able to hold onto their gains. The Chinese government declared that it would step up its initiatives to stabilize the economy.

The market's recovery was aided by reports of prospective production cuts, and worldwide shortages of metals like copper and aluminium. As markets began to get ready for the end of US interest rate increases and China began to ditch its damaging zero-COVID policy, prices rose significantly in November.

Although the loosening may ultimately lead to an increase in demand, it has also made it possible for the virus to spread across the country, eventually disrupting trade.
 

Outlook: After the government promised a stimulus package to get the economy back on track, there was an anticipated increase in demand for metals in top consumer China. The upside would presumably be constrained, though, by concerns about an increase in covid cases in the nation.

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