There is some respite in crude oil price. It eased from a 7-year high and still trading at USD 85-86 per bbl kind of levels, but it was almost above USD 89 per bbl yesterday, January 20.
The rise in US gasoline stocks has led to some profit-taking. Also, markets are looking at OPEC production which continues to be 800,000 barrels per day, below the December production targets.
As there is a bit of a pause in the crude oil rally, the metal prices have continued to surge. The China tin has hit record highs, the nickel prices in China also are trading at all-time highs, there are inventory concerns, availability is low and the China easing policies is supporting demand.
In the ferrous metals, iron ore prices have continued to run up, steel is trading at a 3-month high. There are improved steel margins as well. So everything in metal prices, ferrous and nonferrous has yet again surged up in the Chinese markets.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.