InvestorQ : Why did the price of key industrial metals like aluminium and copper fall sharply on Monday?
Riya Dwivedi made post

Why did the price of key industrial metals like aluminium and copper fall sharply on Monday?

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shrinidhi Rajan answered.
2 months ago
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On Monday, when the Indian markets were shut on account of Independence Day celebrations, China announced macro growth data that was lower than expected. As a result, the prices of Industrial metals like copper, aluminium and zinc fell sharply on demand concerns as China continues to be the world’s largest consumer of such industrial metals by a huge margin. However, it was not all bad news coming from China. For instance, while the Chinese economy did show signs of tapering, there was a positive monetary surprise.

The People’s Bank of China (PBOC), the Chinese central bank, has cut rates for the second time in the current year. The idea was to act as an antidote and provide the much needed boost to credit and revive growth in the world’s second largest economy. For the metal prices, the situation was compounded by a rising dollar, which made metals more expensive, as they are denominated in dollars. In addition, there were concerns over microchip supplies from Taiwan getting impacted by the geopolitical uncertainty.

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