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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (April 04, 2014)

April 4, 2014, Friday, 05:20 GMT | 00:20 EST | 08:50 IST | 11:20 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note yesterday taking cues from positive retail sales data from Euro Zone. Also, decline in LME inventories supported gains.

While on the other hand, unfavorable economic data from the US in the evening session acted as a negative factor. Further, rise in risk aversion in the markets along with strength in the DX capped sharp gains or even reversal in prices.

In the Indian markets, base metals traded higher owing to Rupee depreciation.


Copper

LME copper prices declined around 0.5 percent yesterday as the supply disruption concerns were put to ease after the mines in the world’s biggest producer, Chile resumed normal operations. Also, strength in the DX along with weak global market sentiments acted as negative factors.

However, decline in LME inventories by 0.5 percent to 260,100 tonnes coupled with positive retail sales data from Euro Zone cushioned sharp downside. The red metal touched an intra-day low of $6598/tonne and closed at $6639/tonne on Thursday.

MCX Copper prices gained 0.3 percent yesterday owing to Rupee depreciation and closed at 405.9/kg after touching an intra-day high of Rs.406.7/kg.


Outlook

We expect LME Copper prices to trade on a positive note today taking cues from weakness in the DX along with upbeat global market sentiments that will support an upside in prices. Also, expectations of positive employment data from the US in the evening session will support gains.

However, estimates of decline in factory orders data from Germany along with fall in Halifax HPI from UK will cap sharp gains.

In the Indian markets, Rupee movement will provide further direction to prices.