Base metal complex last week started on a positive note. However, the prices failed to sustain and copper, aluminum and nickel remained negative by 0.5 percent on demand worries while sister metals zinc and lead both traded higher by 3 percent on supply tightness.
Base metals prices reacted positively after the truce between US and China trade agreement but later the rally muted on uncertainty over the US-China trade deal as no agreement within 90 days will mean US continuing with 25 percent tax on additional $200 billion of Chinese goods.
Copper prices are stuck in a tight range on signs of weakness in demand and macro related growth worries. China, the world’s largest copper consumer is slowing due to the ongoing trade conflict with US. This has led to a reduction in China’s growth outlook and furthermore, the country’s GDP is expected to slow towards 6.2 percent in 2019 from 6.5 percent this year.