Views of Ms. Kaynat Chainwala (Research Analyst- Base Metals, Angel Commodities Broking):
"Unprecedented rally in Steel and iron prices gave way to sharp gains in base metals in the last trading session (7th Aug'17). Shanghai Steel Rebar futures are already up by 34 percent on a year to date basis, all thanks to upcoming winter output cuts in China. While Shanghai Steel futures jumped by a whopping 7 percent to 4013 Yuan/t, the highest since April 2013, Dalian iron ore futures surged to near five month high levels of 587.50 Yuan/t in yesterday's session.
The spill over effect of the same could be seen in the industrial metals space where Copper rallied to two year highs and Aluminium jumped to the highest since 2013. Steel linked base metals were not behind either as both Zinc and Nickel surged to five month high levels. In the past few weeks, rally in base metals segment has been quite impressive supported by encouraging economic numbers from China."