Base Metals Market – Industrial Metals Trading

Introduction

Unlike Bullion (Precious), Base Metals tarnish or oxidize easily but are critical for industry and infrastructure. They are indicators of economic activity.

1. Key Base Metals

1. Copper: "Dr. Copper" (Predicts economy). Used in wiring, construction.
2. Aluminum: Used in competitive industries (Auto, Bev Cans, Planes).
3. Zinc: Galvanizing steel (Rust protection).
4. Lead: Batteries.
5. Nickel: Stainless Steel.

2. Pricing Factors

• Global Growth: If China (largest consumer) grows, Metal prices boom.
• LME Inventory: London Metal Exchange (LME) is the global benchmark. Low inventory = High Price.
• Mining Disruptions: Strikes in Chile (Copper) or Indonesia (Nickel) affect supply.

3. Trading in India

• Mainly on MCX.
• Contract Size: E.g., Copper 2500 kgs.
• Prices mostly mirror LME prices.

Summary

• Metals: Copper, Aluminum, Zinc, Lead, Nickel.
• Driver: Industrial Production (China/USA).
• Benchmark: LME (London Metal Exchange).

Quiz Time! 🎯

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