Views of Ms. Kaynat Chainwala (Research Analyst - Base Metals, Angel Commodities Broking):
"September has not been lucky, for base metals in particular, considering the kind of correction it has seen so far.
Base metals, one of the best performing asset segments of 2017, seem to have hit a roadblock yet again this month with China's credit downgrade and North Korea's retaliation warning, sending global investors away from riskier assets.
On 21st Sep'17, S&P Global Ratings downgraded China's long-term sovereign credit rating to A+ from AA-, less than a month ahead of Communist Party Congress, one of the country's most awaited events, citing increasing financial risks from its credit fuelled stimulus.
Not only this, US president Trump ordered new sanctions on North Korea, inviting fury of Kim Jong Un who retaliated by saying that he might test a hydrogen bomb on the Pacific Ocean, only made matters worse.
This sent base metal prices tumbling towards fresh lows in Fridays' session with Copper declining 1 percent, Aluminium and zinc by 2 percent and Nickel and Lead by more than 3 percent on the LME. Nickel has been hurt the most, as hike in transaction fee on the Shanghai Futures exchange added further pressure."