Zinc, Lead, Aluminium, Nickel, Copper, Base Metals Overview..!

Zinc, Lead, Aluminium, Nickel, Copper. Base Metals Overview: May 2015

From MCX Report

Weak global demand outlook on a few downbeat economic data releases, especially from China, pushed metal prices

down.

• Copper

– MCX copper June 2015 futures contract declined by 5.33%

inMay to close the month at `386.65 per kg.

– Demand concerns in China, especially given a weak

Chinese housing market, pulled copper prices down.

– Revised U.S. GDP numbers for Q1’15 showed contraction of

0.7 per cent against previously reported 0.2 growth aided

the fall in copper prices.

– Moreover, lingering uncertainty over Greek debt crisis,

added to the bearish sentiments.

• Nickel

– MCX nickel June 2015 futures contract moved down by

9.01% inMay to close the month at `807.90 per kg.

– After remaining nearly flat in the first half of the month,

nickel prices traversed lower in the second half due to

lower demand and rising inventory amidst lacklustre

global economic outlook.

– Slumping property market in China and dwindling

confidence among U.S. homebuilders also aided the fall in

nickel prices.

• Aluminium

– MCX aluminium May 2015 futures contract closed May at

`109.15, registering a monthly fall of 10.57%.

– Tepid global demand outlook amidst ample supply pushed

aluminium prices down.

– Aluminium stocks at Japanese ports rose to a record high

of 470,200 tonnes, highlighting a healthy supply.

– Rising Chinese exports of semi-finished aluminium on the

back of cheap coal helped to drive aluminium prices down.

• Lead

– MCX lead May 2015 futures contract fell by 7.85% in May,

with a month-close at `125.00 per kg.

– As seen in other base metals, lead prices too traded down

on weak demand outlook amidst ample supply

substantiated by ILZSG data releases.

• Zinc

– MCX zinc May 2015 futures contract declined by 6.09% in

May to close the month at `141.05 per kg.

– Weak demand sentiments from the U.S. and China and a

few downbeat data releases pushed zinc prices down.

– ILZSG estimates that refined zinc market was in surplus in

March, raising expectations of enough inventory buffers to

offset the effect of any mine closure.

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