Gold Silver Reports — Metals Slide 1% Ahead of China PMI Data — Most base metals fell on the Multi Commodity Exchange on Monday as investors opted to book profit ahead of the Friday release of China’s Caixin PMI manufacturing data that is expected to depress metal prices.
On an average, most base metal prices fell 1% with nickel, zinc and copper taking maximum beating.
“Last week, prices of base metals went up, which led to profit-booking by investors,“ said Hareesh V, a senior analyst at Geofin Comt rade. “On an intra-day basis, copper fell 1%, while both zinc and nickel declined 1.6%.“
Nickel, which had so far been the second best performer of 2016 after zinc, slid to `694.70 per kg in the intra-day session on MCX. The metal had touched `711 per kg on Friday. In 2015, it had plummeted 42% to become the worst performer of the year. “All eyes are on the Chinese Caixin PMI manufacturing data,“ said Himanshu Gupta, chief market strategist at Karvy Commodities.“The official September PMI reading will be reported on Saturday, which is expected at 50.5 as against 50.4 in August.“
China has discovered one of its biggest lead and zinc mines in Hotan in the far western region of Xinjiang. According to reports, the mine has about 19 million tonne of lead and zinc reserves. Output from this mine is expected put further pressure on prices of these metals across the world.
According to a recent report from the International Lead and Zinc Study Group, the global market for refined zinc was in deficit from January to July. Global zinc production declined 6.1% during the period, which was mostly due to a substantial reduction in India, Australia, Ireland and Peru.Refined zinc metal output fell 3.9% during the period. This resulted in a rally in zinc and lead prices, analysts said.
Zinc is now trading at `149.80 per kg, down from `157-158 last week.Lead is down to `126.80 per kg from `132.75 on September 20, while copper has slid to `325.35 per kg from `328.40 last week. — Neal Bhai Reports