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Most of the base metals, after ending the previous week on a strong note, relinquished their gains in the following week, with LME Zinc, Aluminium, and Copper experiencing declines.

The prices of base metals were influenced by weak economic data from China, the top metals consumer, which raised concerns about demand expectations.

Despite the support from a weaker dollar, copper prices fell due to the absence of major stimulus announcements from China.

However, there were hopes for potential mortgage easing in China's largest cities, which provided optimism for the real estate sector's commodity demand.

Base metal prices were also supported by supply-side risks in Peru and Indonesia. The market remained sensitive to global economic conditions, dollar fluctuations, and expectations surrounding stimulus measures in China, which shaped base metal prices throughout the week.

OUTLOOK: We expect copper to trade lower towards 719 levels, a break of which could prompt the price to move lower to 713 levels.

 

 

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