Global Metal Stocks Tumble, US Tariff Fears Trigger Sell-Off

Mumbai: Shares of major Indian metal companies, including Vedanta Ltd, Hindalco Ltd, Hindustan Copper Ltd, NALCO Ltd, and Tata Steel, plummeted between 5% and 7% on April 4. This slump followed US President Donald Trump’s tariff announcements, which unsettled global metal markets.

US Tariff Impact on Global Metals

While steel, aluminum, and related products were exempt from new reciprocal tariffs, they had already faced a 25% import duty. Copper, though currently exempt, may soon face similar tariffs.

Other Commodities Affected

Zinc, nickel, tin, and several other commodities remain exempt from specific tariffs but could face Section 232 investigations in the future.

Global Concerns Over Economic Slowdown

The US tariff measures have stoked fears of a potential recession. Additionally, China and the European Union have pledged countermeasures, escalating concerns about a broader global economic slowdown.

Copper and Precious Metals Hit Hard

Copper: Fell nearly 4% on the London Metal Exchange (LME), marking its largest intraday drop since November. Citigroup predicts another 8-10% decline.

Silver & Platinum: Silver hit a one-month low, while platinum dropped to its lowest in over two months.

US Dollar’s Role in the Sell-Off

Despite a sharp US dollar sell-off, global commodities are under pressure. A weaker dollar usually supports metal prices as it reduces costs for foreign buyers. The US Dollar Index fell from 110 to below 102 amid equity market turmoil.

The combination of tariff fears, economic slowdown concerns, and volatile currency markets has triggered a significant sell-off in metals globally, with Indian companies bearing the brunt.