Metal prices rebound from lows; details here
Monday witnessed an across the board decline for metals, from ferrous to non-ferrous, but there is a bit of a rebound and this comes in despite the surge in the US dollar, which is trading at a 16-month high.
Monday witnessed an across the board decline for metals, from ferrous to non-ferrous, but there is a bit of a rebound and this comes in despite the surge in the US dollar, which is trading at a 16-month high.
A couple of factors to watch out for – one is the statement that Japan and US have agreed to discuss the tariffs on steel and aluminium. This was put during the Trump regime and there are conversations that these could be eased off, the talk around it is what clearly seems to be improving the sentiment for metal prices.
The other is that more and more China smelters are now imposing curbs on output. We have seen that happen because of energy rationalisation. Many smelters, whether it is steel, aluminium, copper or zinc have seen curb in production; many have been shut down as well.
The inventories have continued to decline for many of these metals in Shanghai and on LME while the demand on ground continues to be strong and that is showing in prices as well.
The latest data that has come in from China with regard to metal output for the month of October has seen a further decline on a month-on-month (MoM) and on a year-on-year (YoY) basis yet again. So, whether it is copper or aluminium, which have seen a decline in production between 3 to 4 percent, even deeper decline in production is what we are looking at in lead at 7.50 percent; refined zinc production is down by nearly 12 percent and many of these metals have rebounded today in Shanghai and on LME.
Catch all the stock market live updates here.
(Edited by : Dipikka Ghosh)
First Published: Nov 16, 2021 1:06 PM IST
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