Likely trade thaw fires base metals

New Delhi: Likely resumption in trade talks between the US and China could help revive base metals, with periodic tariff tiffs between the world’s two biggest economies causing industrial metal prices to decline since the beginning of 2018.

“Both US and China are taking measures to boost consumption of metals and focusing on domestic automobile, electronic markets, ecommerce and infrastructure projects,” said Anuj Gupta, deputy vice-president of research on commodities and currencies, Angel Broking. “This will give support to the base metals.” Prices of zinc and lead, at four-month and two-month lows, respectively, recovered. On Wednesday, on the Multi Commodity Exchange, zinc for delivery in September traded 0.16 per cent higher at Rs 184.60 per kg.

Analysts expect zinc to hold at Rs 180-182 per kg level and to revisit the resistance zone of Rs 188-195 per kg. Lead contracts for September delivery on the MCX traded at Rs 155.60 per kg, and could climb to Rs 165 per kg, Gupta said.


MCX copper corrected a tad to Rs 444.20 per kg and nickel by 1.45 per cent to Rs 1,132.30 per kg.

An analyst at Motilal Oswal said MCX copper price is expected to trade sideways to positive in the same range. Manoj Jain, director, IndiaNivesh Commodities, said any supply shortage due to poor global demand, weakness in rupee and any positive outcome of the trade negotiations will only support prices.