Strengthening dollar, China's weakness impacting global metals market

摘要

Metals prices across the globe remained weak during the month of November 2015. The Global metals market was totally swayed by strengthening US dollar currency coupled with continued slowdown in China. Significant fall was seen in prices of iron ore, steel and all base metals except aluminium. While, other non- ferrous metals prices fell, aluminium prices were flat m-o-m at US$1442/ tonne, showing signs of some stability. An Emkay analyst report says that base metals also have been a victim of China's excess capacity. Prices for all metals decreased significantly except aluminium where we believe prices have equaled cost of production. China has delayed some planned capacities which may let prices to stabilize. Demand for base metals has to be main growth driver which may still take some time.