IGI Logo

Below is Weekly Basemetal Report by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd

Weakness persisted in the base metals, as the whole pack continued the losing momentum for yet another week. LME Zinc was the top losing metal, ending with a cut of 8.7 percent.

Copper prices slumped on Friday to their weakest in 17 months and have registered their worst quarter since 2011, falling 20.4%, as inflation and factory data fueled concerns that central bank tightening will send economies into a recession and hurt demand for commodities.

Even after some encouraging news from the biggest consumer of metals, China, sentiment remained low after manufacturing activity grew at its quickest pace in 13 months in June.

However, the US industrial activity slowed more than anticipated in June, hitting a two-year low. The situation in the Eurozone remained bleak, this gives the ECB more leeway to raise interest rates for the first time in more than ten years. Also weighing on metals was a firmer dollar makes commodities priced in dollars more expensive for buyers using other currencies.

Outlook: We expect copper to trade lower towards 671 levels, a break of which could prompt the price to move lower to 661 levels.

Above views are of the author and not of the website kindly read disclaimer