MTECHTIPS;-Copper Gains Sharply in Month Ending February 2018

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MTECHTIPS;-Copper Gains Sharply in Month Ending February 2018

MTECHTIPS- Copper-With India becoming the fastest growing economy in the world in December 2017 quarter, the hopes for metals to keep heated remain alive. Even though China is facing issues of overproduction and skepticism in relation to demand, India’s growth will favour the stakeholders in a better way. India grabbed the status of the world’s fastest-growing major economy in the October-December quarter, due to the pick-up in growth in manufacturing and services sectors. Gross domestic product or GDP grew 7.2 per cent in the October-December quarter from a year earlier. Infrastructure that is the catalyst for the demand of Non Ferrous metals grew by 6.7 percent. This had a positive impact on the prices of majors like Copper, Aluminium, Lead and Zinc. All these commodities marked a significant rise in the month ending February 2018. The infrastructure focus by the government and rising economy is a sign of good prospects for metals especially Copper and Aluminium. On the other hand, metals like Lead will be banking again on the batteries growth and the innovations in the e vehicles industry. China is a major thrust area for the demand of Lead. Use of Hybrid vehicles and battery operated ones will be added boost for Lead. Overall trend for metals in domestic markets remain positive though linkage with world bourses cannot be ignored. Volatility on account of US tax moves in Aluminium will be watched keenly by the speculators and stakeholders. Indian Copper moved up by 13 percent in February 2018 on a year on year basis. The prices averaged at Rs 450.95 kg by the end of February 2018. A marginal slide was seen on a monthly basis though. The prices were down by 0.31 percent from Rs 452 per kg in January 2018