Base metals decline on the back of weak US Dollar Index

2104 Investors following ESS DEE. Share this News with them.

0

Like this story, share it with millions of investors on M3

Base metals decline on the back of weak US Dollar Index

The base metals were not performing well because of the weak US Dollar Index. China was holding 1.2 million tonne of copper, which was good for 80 days of consumption.

Post your opinion here

 

0

Tweet

Share on Tumblr

The base metals were not performing well because of the weak US Dollar Index. China was holding 1.2 million tonne of copper, which was good for 80 days of consumption.

Here is a verbatim transcript of Commodities Editor, Manisha Gupta's comments on CNBC-TV18. Also watch the accompanying video.

The base metals are not doing so good because US dollar index to start with has rebounded from 75.92 kind of lows to back above 76. That is definitely putting pressure on to the prices.

But apart from that even before that we have seen base metal prices actually giving up those kinds of gains that you saw yesterday, the reason being that the markets are looking for recovery out of China.

The recent rally in metals happened because of huge imports or record imports into China. The second half of 2009 has not been good because we have seen decline in Chinese imports in the month of July and August. While we have seen strong data coming in from Japan and US, the recovery from those areas is not very conclusive.

Markets even at this point in time would look at triggers other than dollar and China to see some more kind of a rally into the markets coming back.

Apart from that China is holding 1.2 million tonne of copper which is good for 80 days of consumption which is as good as most imports for the coming year as well. That is another factor putting pressure on to the prices.

It is the kind of reaction you saw in the commodity stocks as well as Ess Dee Aluminium , Uttam Galva , Hindalco all of them decline between 2-4% in the trade today.