Last month, base metals dropped due to worries over flagging Chinese demand. Uncertainty over the US economy and the Federal Reserve’s bid for a “soft landing” as it prepared to pivot to monetary easing added to jitters last week. Recent weak PMI data from China and the US suggests that economic weakness may persist.

Economic Disappointment:  Additional pressure came from a disappointing July US jobs report, which showed slow job growth and rising unemployment, contributing to declines in equities and yields.

Copper – Copper prices are likely to decline further due to recent PMI data showing a global manufacturing contraction and slowdown in orders, coupled with rising global inventories.  Market demand is also affected by the ongoing consumption off-season, and upcoming China’s CPI data, due later this week, could further influence price movements. This week, MCX Aug copper prices (CMP: 787) may find strong support near the Rs. 767/750 level, while Rs. 810/825 may act as strong resistance.

Zinc: Zinc prices are expected to experience significant fluctuations at low levels due to weak demand from China and expectations of a slowdown in the US. However, no new inventory inflows for the metal were reported last week. This week, MCX Aug Zinc prices (CMP 249) may find strong support near the Rs. 243/239 level, while Rs. 255/261 may act as strong resistance.

Aluminium: The outlook for aluminium prices remains bearish due to growing concerns about global market liquidity and escalating regional conflicts. Additionally, China’s domestic aluminium supply continues to increase while downstream processing and end-user demand have entered the off-season, leading to a low operating rate in the aluminium processing industry. This week, MCX Aug Aluminum prices (CMP: 210) may find a strong support near the Rs. 205/201 level, while Rs. 216/220 may act as strong resistance.

Last month, base metals dropped due to worries over flagging Chinese demand. Uncertainty over the US economy and the Federal Reserve’s bid for a “soft landing” as it prepared to pivot to monetary easing added to jitters last week. Recent weak PMI data from China and the US suggests that economic weakness may persist.

Economic Disappointment:  Additional pressure came from a disappointing July US jobs report, which showed slow job growth and rising unemployment, contributing to declines in equities and yields.

Copper – Copper prices are likely to decline further due to recent PMI data showing a global manufacturing contraction and slowdown in orders, coupled with rising global inventories.  Market demand is also affected by the ongoing consumption off-season, and upcoming China’s CPI data, due later this week, could further influence price movements. This week, MCX Aug copper prices (CMP: 787) may find strong support near the Rs. 767/750 level, while Rs. 810/825 may act as strong resistance.

Zinc: Zinc prices are expected to experience significant fluctuations at low levels due to weak demand from China and expectations of a slowdown in the US. However, no new inventory inflows for the metal were reported last week. This week, MCX Aug Zinc prices (CMP 249) may find strong support near the Rs. 243/239 level, while Rs. 255/261 may act as strong resistance.

Aluminium: The outlook for aluminium prices remains bearish due to growing concerns about global market liquidity and escalating regional conflicts. Additionally, China’s domestic aluminium supply continues to increase while downstream processing and end-user demand have entered the off-season, leading to a low operating rate in the aluminium processing industry. This week, MCX Aug Aluminum prices (CMP: 210) may find a strong support near the Rs. 205/201 level, while Rs. 216/220 may act as strong resistance.

Below is the Aluminum Prices trend