Metal prices likely to remain volatile over coronavirus concerns

Analyst reports suggest that margins are likely to contract from the first quarter

The S&P BSE Metal index has underperformed the benchmark Sensex by a wide margin. Since fear of the coronavirus (COVID-19) outbreak gripped the markets, the index has fallen by about 43 per cent compared to 29 per cent in the case of the Sensex.  

At the London Metal Exchange (LME), the price of aluminium, copper and zinc have also fallen sharply, ranging between 10 per cent and 25 per cent; steel prices are still holding out, but there are signs of a correction in the weeks ahead. 

In the last three months, steel prices increased by 15 per cent; the last round