Base metals weak on muted demand, global cues

Prices of base metals fell by Rs 2 per kg at the non-ferrous metals market today, tracking a weak trend overseas amid tepid demand from consuming industries.

Traders said, sentiment remained bearish after Shanghai copper fell more than 1 per cent following US officials confirmation that President Donald Trump's administration proposed an increase in tariff rate on USD 200 billion worth of Chinese goods.

Fears that the trade row between the world's top two economies could hit demand for industrial metals saw Shanghai copper shed 3.4 per cent in July, while London copper posted its biggest monthly fall since December 2016.

Meanwhile, the most-traded September copper on the Shanghai Futures Exchange fell by 1.4 per cent to 49,240 yuan (USD 7,230.44) a tonne, having earlier slipped to 49,010 yuan, its lowest since July 24.

Also copper for delivery in three months slipped by 0.2 per cent to USD 6,162.50 a tonne, after closing down 2 per cent in the previous session on the London Metal Exchange.

Furthermore, easing demand from consuming industries at domestic spot market, too weighed on metal prices, they said.

In the national capital, copper mixed scrap and nickel plate (4x4) and zinc ingot drifted lower by Rs 2 each to Rs 436 and Rs 133-139 per kg respectively.

Lead ingot and lead ingot also shed Rs 2 each to Rs 138 and Rs 145 per kg, respectively.

Following are today's metal rates (in Rs per kg):