On a weekly basis, the base metals complex delivered poor performance on the LME. Mounting worries with respect to Euro Zone debt crisis created demand concerns for the metals which affected prices.
Additionally, a stronger dollar coupled with weak sentiments in the global markets also acted as a negative factor for base metals. However, Rupee depreciation cushioned further losses on the domestic bourses last week.
Aluminium
Aluminium was the top loser in the last week, as the metal declined sharply by 6.5 percent on the LME and around 4 percent on the MCX.
Dollar strength and global demand concerns due to rising global economic uncertainty exerted downside pressure on prices.
Additionally, aluminium production is an energy-consuming process, hence fall in crude oil prices also made production less expensive which further affected the metal prices last week.
Nickel
Following aluminium, nickel declined by almost 5 percent on the LME and more than 3 percent on the MCX to become the second worst performer last week.
Sharp rise in the metal inventories acted as a negative factor for prices. On a weekly basis, nickel inventories increased around 4.6 percent to 88,668 tonnes on the LME warehouse.
The metal touched a low of $16,825/tonne and closed its trading session below the level of $17,000/tonne last week.
Courtesy: Angel Commodities
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