Base Metals - Aug 3, 2020 - Mr. Tapan Patel - Senior Analyst - Commodities, HDFC securities

Base metals complex traded mixed with Zinc and Lead prices gained the most while Copper prices ended marginal down during the week.

Zinc prices at LME rose by more than 4% despite a rise in inventories at LME. The Zinc inventories at LME rose by 71525 tonnes in the previous week to 188175 to the highest levels since October 2018. However, Zinc inventories at SHFE are down by 8100 tonnes from the March 2020 levels which is spurring the prices at Shanghai due to revival in industrial demand.

Copper prices traded under pressure on demand growth concerns amid weaker demand and ample supplies. Copper inventories at SHFE rose by 1829 tonnes for the week. LME Copper prices are facing strong resistance near $6645 at 76.4% retracement levels of previous fall. We expect Copper prices to trade in current range with support at $6240 per tonne. MCX Copper August futures have near term resistance at Rs. 512 per KG with support at Rs. 490 per KG for short term.

Source : Equity Bulls

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