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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 week of positive returns, the metals pack was back in negative territory. Except for Lead, all the other metals ended on a lower note.

Due to the markets' extended holiday weekend break, it was a light trading week. However, when it resumed, the downside pressure pertained, as the metals slipped lower. Following a rise in COVID-19 infections in China and worries about a global economic slowdown, copper prices fell from their two-week highs.

Base metals have largely underperformed for the year ending in 2022 after a robust 2021. On the LME and MCX, Nickel was the only commodity to end the year on a higher note.

The leading copper smelters in China have decided to hold firm on the treatment and refining charges (TC/RCs) guiding price for copper concentrate in the first quarter of 2023. 

To offset the expense of the ore, miners pay TC/RCs to smelters to convert copper concentrate into metal. Charges decrease when the supply is limited and increase when there is more concentrate available.
 

Outlook: Demand optimism on the back of promised stimulus in order to revive the economy, would likely see an uptick in demand for metals.

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