Steel rally, Chinese demand prospects - win-win for base metals: Angel Commodities Broking

Views of Ms. Kaynat Chainwala (Research Analyst - Base Metals, Angel Commodities Broking):

"Aluminium is leading the base metals rally today as strong industrial activity in China boosted demand prospects. Aluminium on the LME is trading at $2138/t, highest since Feb'13 while it has surged to nine year high of Rs.136.45/kg, on the MCX. China's Caixin manufacturing PMI rose to six-month high in Aug'17, dismissing fears of a tighter credit and cooling property market induced slowdown.

Besides, spill over from upside in Steel prices is reflecting in base metals. Steel prices hovered near the highest since 2013 after statement from China's environment ministry that the mainland nation plans to conduct 15 rounds of inspections during its new campaign to curb smog during winter starting September 1, 2017 and continue until the end of March 2018. As a result, Nickel prices surged to nine month highs of $11985/t on the LME and Rs.765.6/kg on the MCX. Zinc and Copper witnessed marginal upside, but continue to be near multiyear high levels."

Source : Equity Bulls

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