Base Metal Commodities Trading Likely To Move Sideways With Negative Bias

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Base Metal Commodities Trading To Move Sideways With Negative Path Due To Uncertainty In Metals’ Demand, Increasing US Interest Rates, Slowdown In China’s Commodity Market, And Possibility Of Metal Shortages

The base metal commodities trading is expected to move sideways with a negative bias due to several reasons.

The prices of base metals such as copper, zinc, lead, nickel and aluminium can trade on sideways with a negative bias because of the uncertainty related to the metals’ demand due to trade wars. The increasing US interest rates and the slowdown in China are also having an impact on the prices of the industrial metals. The submerging signals pointing to possible shortages of the base metals is also one of the reasons.

There is the possibility for copper, zinc, lead, nickel and aluminium to face resistance near 465 Rupees, 198 Rupees, 152 Rupees, 950 Rupees and 162 Rupees, respectively.

Also, copper, zinc, lead, nickel and aluminium can take support near 450 Rupees, 192 Rupees, 149 Rupees, 920 Rupees and 158 Rupees, respectively.

Over the past three months, the global prices of base metals have seen a correction, and the base metal commodities trading prices are unlikely to go down further.

The global prices of non-ferrous metals have observed a correction because of the global macroeconomic issues following the ongoing trade wars. Since the global market of the base metals is presently in deficit, even the demand-supply fundamentals would not justify such a correction.

The aluminium and zinc markets are expected to stay in deficits, and the copper market might turn into a marginal surplus throughout 2018, said Jayanta Roy, Senior Vice-President, ICRA. So, the risk of a further fall in base metal prices appears to be low as on date, added Roy, as reported on The HINDU BusinessLine.

The base metal commodities trading can move sideways with a negative path due to the uncertainty in the metals’ demand, the increasing US interest rates, the slowdown in China’s commodity market, and the possibility of base metal shortages, according to a report on The Economic Times.

The post Base Metal Commodities Trading Likely To Move Sideways With Negative Bias appeared first on OWLT Market.



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