The metal stocks saw a big fall in Friday’s trade. One of the key reasons for the fall was Fed’s more-than-expected hawkish tone.
The Fed’s tone resulted in the strengthening of the dollar, which in turn, hurt the base metal prices. Hence, there was some selling pressure.
There is also uncertainty surrounding the Chinese steel demand. The slowdown in automotive production because of chip shortage, action on curbing speculations in the property market, and weak construction activity due to high commodity prices are expected to dampen the steel demand.
China’s announcement of release of copper, zinc, aluminium from state reserve from July 1 to downstream businesses is also putting pressure on metal prices.
According to Edelweiss, domestic HRC prices are correcting by nearly 2 percent on a weekly basis. Although they do believe that the international market will continue to remain strong.For more details, watch the video.