BA:Lead, Zinc and Tin would be impacted as a result of Euro zone crisis
With the Euro zone crisis spreading to Italy, the world economy has paused for a breather. So how will this scenario affect Indian commodity markets? Commodity Online tries to find out.
Base metals & energy
“The debt crisis may impact the market sentiments in India. Weakness may set in and risk appetite may come down. Lead, Zinc and Tin would be impacted as a result. But nickel, Copper and aluminium, would not be hit bad.” said Priyanka Jhaveri of Kotak Commodities.
“The fundamentals of copper, Aluminium and Nickel are relatively strong even as in the case of lead, zinc and tin, the fundamentals are weak.”
“A knee-jerk reaction can be expected in the crude-oil markets that would be reflected as price correction. But the impact would be minimal.” she added.
The same holds true for natural gas, she said.
Edible oils and spices
“Indian edible oil market generally tracks US sentiments and given the weakening of Euro and resultant strengthening of US dollar, the edible oil complex is expected to witness a decline, said Chowda Reddy, commodity analyst with JRG, Hyderabad.
“Spices should be viewed on a broader perspective. If the economic scenario there gets weakened, demand for spices can come down eventually.” He added.
Rubber
“Rubber prices may go up by Rs.20 in the span of 3-4 weeks”, said an industry player who did not want to be named.
The market is gaining depth and spread. “Even building materials are utilising rubber.”
“The demand for replacement in tyres would sustain momentum in the market for rubber.” he said when pointed out that sluggish automobile scenario may prove to be demand dampener.
