Current Scrap Metal Prices

As per the expectations base metals assemblage is reacting in line with currency movements in a big way. Currency fluctuations are expected to play the vital role in influencing base metals also as it makes base metals cheaper or expensive as per the movement in dollar. Though, the recent jump in base metals cannot be ascribed as a purely fundamental move as short-covering in times of low prices has led to the move.

Weak Chinese demand for copper may persist whereas copper prices have shown dip due to rise in inventories. Tin prices were driven by supply-related concerns from Indonesia and China, the world’s two biggest producers and thereby are expected to behave in a positive way.

Aluminum prices are expected to react to movement in crude oil prices. Crude oil prices have shown a dip after getting relieved from geopolitical tensions and hence the trend in aluminum prices too is dubious as it is an energy-intensive metal and rising oil prices will raise concerns over production of primary aluminum and vice- versa. In the coming week, we expect base metal prices to fickle. The recent rise in prices could be followed by a bout of profit-booking.

Courtesy www.commodityonline.com