Expect base metal futures to trade negative: Sushil Finance

Sushil Finance report on Base metalBase Metals Zinc rallied to its highest in nearly 15 months on Wednesday as investors continued to fret over a shortage of mine supply, while other metals surged amid sharp falls in the dollar. The U.S. dollar fell broadly on Wednesday as U.S. Treasury yields fell and investors waited on a speech by Federal Reserve Chair Janet Yellen later this month. A weaker dollar makes dollar-priced metals cheaper for non-U.S. investors. Confidence in copper's outlook is fading as the impact of Chinese monetary stimulus wanes and markets focus once more on oversupply. Zambia's copper production climbed 8 percent to 368,371 tonnes in the first six months of this year versus the same period last year, the country's chamber of mines said. Global production of stainless steel was 0.4 percent higher in the first quarter than in the same period of 2015 as Chinese mills ramped up their output, indicating strong nickel demand. China, the world's top producer of the metal,could ramp up imports of refined tin as a string of environmental inspections at smelters curbs local output. Outlook We expect base metal prices to trade negative on the back of worries about demand from China.For all commodities report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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