Metals in focus as US weekly jobless claims fall
The new unemployment claims in the US dropped more than expected last week to a 14-month low of 406,000. The strong data seems to be supporting the price of metals right now.
The new unemployment claims in the US dropped more than expected last week to a 14-month low of 406,000. The strong data seems to be supporting the price of metals right now.
The view is that even as China has intensified its fight against increasing commodities prices by trying to crack down on speculators and hoarders, buying is still going on on the ground. Buying is still continuing from the Chinese government as well as companies in the country. Therefore, the on-ground demand is on the stronger side and that is supportive.
Copper rebound by nearly $ 100 in the last two trading sessions, so the prices of the metal are back above $ 10,000 per tonne.
Apart from stronger data, the support for metals also comes amid threats of a strike in the mines of Chile. Be it BP, Escondida or Spence mines, all of them have threatened strike.
The US multi-trillion-dollar infrastructure plan is yet another reason for the support for metals. According to another report cited by Reuters, business spending on equipment picked up speed.
Nickel is also trading at a one-week high. Here as well the market deficit widened. The Q1 has seen a huge deficit as compared to the surplus in 2020.
Zinc too has outperformed in the last couple of sessions, it is trading at a two-year high. However, there are concerns about production in China as there is a 10 percent cut in power generation to be used by these smelters.
CNBC-TV18’s Manisha Gupta has more details. Watch this video for more.
(With text inputs from Reuters)
(Edited by : Kanishka Sarkar)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Prajwal Revanna's father in custody for alleged kidnapping and sexual abuse
May 4, 2024 7:53 PM
Delhi, Indore, Surat and Banswara — why these are the most challenging domains for Congress internally
May 4, 2024 1:53 PM
Congress nominee from Puri Lok Sabha seat withdraws, citing no funds from party
May 4, 2024 12:00 PM
Lok Sabha Polls '24 | Rahul Gandhi in Rae Bareli, why not Amethi
May 4, 2024 9:43 AM