Metals fall with a clang as demand slumps
- IPL spot-fixing case: Actor Vindoo Dara Singh arrested
- IPL 2013: Final No.5 for MS Dhoni-led Chennai Super Kings
- Pune Warriors withdraw from IPL, 'disgusted' by BCCI's attitude
- IPL spot fixing: Accused Sreesanth claims innocence
- Li Keqiang visits TCS, Cyrus P Mistry says China important for growth of Tata Group
Following the global financial crisis and a sudden dip in demand for metals, metal prices which were riding in the last two years have seen heavy fall of up to 51 per cent just in a month's time.
Price of copper has tanked by 27.80 per cent in the spot markets in Mumbai metal market. Nickel led the fall losing 51.5 per cent in value from September 20 to date. Zinc prices slipped by 37.55 per cent while tin prices declined by 23.02 per cent and lead by 23.50 per cent in the said period.
While precious metals gained despite the crisis, as gold emerged as an alternative investment tool and saw a continuous increase in value, other metals dipped. A global fall in demand for metals over the last three months has dampened the morale to a great extent.
Even China which had been consuming iron and steel for its infrastructure projects at a ferocious speed has mellowed down on account of a fall in demand for these metals. A fall in China's annual GDP growth to 9 per cent in the third quarter from 10.1 per cent in the second quarter, led to demand fears and hampered sentiment.
"The sentiment has been badly affected, the fall in China's GDP has turned the outlook for industrial metals bearish and lack of demand is the main reason for the continuous fall in prices," said Rahul Mudgaonkar, analyst with a Mumbai-based broking house. Of late, fears of a global recession have hit the sentiment in the metal market.
Amongst metal companies, steel manufacturers had to bear the brunt of the global slowdown significantly. In the period between September 20 and October 20, JSW Steel's shares lost 54.95 per cent while Tata Steel shares dipped 48.85 per cent in value. Similarly, SAIL shares lost 27.13 per cent on the Bombay Stock Exchange in the same period.
- 'Sophisticated' Indian cyberattacks targeted Pak military sites: Report
- Talkative Li quoted Weber, Hegel, Jobs, said PM is large-hearted
- Bihar food corp ends up with chaff as rice worth Rs 535 cr vanishes from mills
- In 7 lucrative minutes on May 9, Sreesanth bowled 6 balls, bookie made Rs 2.5 cr
- India and China ask border envoys to work on more steps
- Former Ranji player among 3 more held