Base metals complex traded higher as most of the metals witnessed strong recovery from recent lows, according to an analysis by HDFC Securities.
Nickel, zinc and aluminium gained the most amongst the complex followed by copper and lead. Over the week, LME zinc rose by $116/mt to $2,433.5/mt. Copper was up by 5pc or $332/mt to $6,741/mt while lead rose by 1pc to $1,780/mt on Monday from the previous week, up by $17/mt.
Aluminium rose the highest, 6pc to $1,805/mt or up by $100/mt in a week. Nickel rose by $719/mt and closed at $14,990/mt on Monday from the week prior.
Strong demand prospects from China over better-than-expected economic data boosted buying in base metals. Copper prices rose over supply concerns with top mining nation Chile reeling under a labour strike. HDFC expects base metals to trade in upper range with copper support at $6,450/mt and resistance at $6,900/mt.
Market participants believe that China’s economic recovery is pushing prices of metals higher. In India, demand for material is not as strong and many buyers are shying away from high import rates and are waiting for prices to fall, leading to lower trades.