Base Metals - May 4, 2020 - HDFC Securities

Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Base metals complex traded lower in previous week while prices have continued the weak trade on Monday. Prices are trading down by nearly 1% with Copper and Zinc losing the most among the complex.

Base metals have started the week on lower note on weak demand outlook and resume of mine production. The resume of mine activities with ease in lockdown measures in Peru, Zambia and Chile have pressured base metals to trade lower. The expectations of new tariffs from US on China has raised cocerns over demand recovery.

Copper prices are expected to limit down side with recovery in import premiums and decline in inventories in China. The copper import premiums has rose to $90 per tonne while inventories at SHFE has declined by 28081 MT in last week.

MCX Copper May contract has important resistance at Rs. 412 with strong suppot at Rs. 383 for short term.

Source : Equity Bulls

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