US President Donald Trump delayed his deadline to raise tariffs on Chinese goods.
Updated: Mar 28, 2019, 08.22 AM IST
On the flip side, if the rupee stretches beyond 68.40 and touches the 67.90-level, these metals could turn weaker again.
Kolkata: The US-China trade conflict has had a dampening effect on the prices of zinc, lead, copper and nickel, which have seen very slight escalation in rates this month despite being in short supply, analysts have said. They, however, said a bounce back in prices of these base
is possible in April as seasonal
for base metals may go up due to an expected uptick in industrial production.
US President Donald Trump delayed his deadline to raise tariffs on Chinese goods, as his administration continues efforts to persuade Beijing to make significant structural changes to its economy.
“Overall, base metals have been in volatile sessions in this March series with bears having a better hand than bulls,” Jateen Trivedi, commodity analyst at Bonanza Portfolio, told ET. “As the US-China trade talks have been delayed, it’s led to a fall in prices of base metals, especially copper and nickel.” Analysts said that in the Indian market, the appreciation of the rupee from 71/dollar to 69/dollar helped the prices to correct in the base metal category. They expect some bounce back in prices of base metals as the rupee seems to finding some resistance at the 68.50 level. Himanshu Gupta, vice-president, Globe Capital Market, said copper has a strong potential to rally between Rs 452 and Rs 455 per kg, while zinc can climb to Rs 205 per kg on the MCX.
On the flip side, if the rupee stretches beyond 68.40 and touches the 67.90-level, these metals could turn weaker again. “Metals which may keep trading weak are nickel and lead with a downside potential of Rs 865 -845 per kg and Rs 135-133 per kg respectively,” said Trivedi. There are growth concerns in some of the major economies which affect metal demand, said Gnanasekar Thiagarajan, director at Commtrendz Research. “The bounce-back in prices will be short-lived. The numbers that have come out from major economies are not satisfactory for a spurt in metal demand .”
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