The impact of Trump tariff is clearly visible on base metals and crude. Fears of global recession and China's rating downgrade led to the biggest sell-off in metal stocks today. Nifty metal sector fell by about 6%. NALCO, Tata Steel, Vedanta and Hindustan Copper and NALCO saw a decline of up to 8%.
The prices of base metals have fallen in the international market. Copper prices have reached a 3-week low while zinc has slipped below 9 months. Copper on LME has reached a 1.5-month low. Steel prices in China have fallen below 3200 CNY/ton.
Meanwhile, the price of iron ore has fallen below 5 months while the price of aluminum has fallen below 7 months. The price of zinc has also fallen below 9 months. Due to Trump's reciprocal tariff, there is a decline in base metals. The market is also afraid of recession in America. Meanwhile, Fitch has reduced China's rating from 'A+' to 'A'. The effect of which is also being seen on metals.
If we look at the movement of base metals, copper has seen a decline of 7% in 1 week while it has fallen by 1% in 1 month. On the other hand, steel has seen a decline of 1%, iron ore by 5%, lead by 5%, aluminium by 5%, tin by 6% and nickel by 5% in 1 week.
In one month, there was a decline of 3% in steel, 5% in iron ore, 5% in lead, 9% in aluminium, 7% in tin and 2% in nickel.
Let us tell you that the US has largely kept metals out of the comprehensive trade restrictions. However, fears remain that the macroeconomic effects of US President Donald Trump's policies could slow global growth and harm consumption. Copper for May delivery on COMEX fell to $4,839 per pound ($10,645 per tonne), down 10% from last week's record high. Copper also fell 2% to $9,510.5 per tonne on the London Metal Exchange. With this, aluminum also fell to its lowest level in about 7 months.
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