Metals have seen some profit-taking across the board and more so in the case of ferrous metals where the iron ore and steel prices are declining again. Steel prices have plunged 18 percent to Rs 4,900—a three-month low from the all-time high of Rs 5,975.
One of the factors impacting the prices is currency: A Federal Reserve meeting is scheduled next, there is a European Central Bank meeting tomorrow, and a Bank of Japan meeting today.
Further, there are concerns about slumping Chinese demand. All the data is coming from China is on the weaker side - be it home sales numbers, manufacturing data, or durable goods numbers.
Also, the power monitoring has led to a decline in steel production, with downstream companies demand taking a hit. From the automobiles too, the chip shortage is impacting metals, including steel.
The only thing that is supporting metal prices right now is the People's Bank of China (PBoC), the central bank of China. It has injected money into the markets for three straight days.
For more, watch the video by CNBC-TV18's Manisha Gupta