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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (April 02, 2014)

April 2, 2014, Wednesday, 05:43 GMT | 00:43 EST | 10:13 IST | 12:43 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note yesterday taking cues from weak manufacturing data from all the advanced economies namely the US, China, Euro Zone and UK that exerted downside pressure on prices.

While on the other hand, rise in risk appetite in the market sentiments along with weakness in the DX acted as a positive factor.

In the Indian markets, base metals traded on a mixed note taking cues from International markets.


Copper

LME Copper prices rose by 0.2 percent yesterday on the back of speculation that China will add to monetary stimulus to support the economy after manufacturing fell to 8-month low in March. Also, upbeat global market sentiments coupled with weakness in the DX supported gains. Further, decline in inventories by 0.7 percent to 263,250 tonnes acted as a positive factor.

However, sharp gains were capped taking cues from unfavorable data from the US, China, Euro Zone and UK. The red metal touched an intra-day high of $6670.25/tonne and closed at $6658.3/tonne on Tuesday.

MCX Copper prices fell by 0.1 percent yesterday touching an intra-day low of Rs.402.3/kg and closed at Rs.403.8/kg.


Outlook

We expect LME copper prices to trade on a positive note today taking cues from concerns that earthquake in the world’s biggest producer, Chile will lead to supply disruption. Also, estimates of favorable economic data from Euro Zone and strong construction data from UK, weakness in the DX along with upbeat global market sentiments will support gains.

Further, positive economic data from the US in the evening session will add an upside to prices.

In the Indian markets, Rupee appreciation will keep a check on gains.