Ferrous metals like steel and iron ore are not doing so well but non-ferrous metals like copper and aluminium have seen a pickup.
Copper is trading at a 2-week high; the Ukraine war and the US interest rates factored in and now the prices are looking at inventories and demand uptick.
The fall in London Metal Exchange (LME) inventories for copper and aluminium is steep and the markets also taking support from the decline in the US dollar, which has continued to slip below 103. The markets are expecting China’s stimulus to come in any day and that seems to be adding a premium to the metal prices.
Therefore, after six weeks of a decline, this week could be positive for the sector.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.
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