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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (April 10, 2014)

April 10, 2014, Thursday, 05:49 GMT | 01:49 EST | 10:19 IST | 12:49 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Copper and Zinc traded on a positive note yesterday taking cues from FOMC meeting minutes which denied any early rise in interest rates, thereby boosting demand for base metals. Also, weakness in the DX, upbeat global market sentiments coupled with decline in inventories along with favorable trade data from UK acted as a positive factor.

However, weak trade balance data from Germany restricted sharp gains in prices.

In the Indian markets, base metals traded on a mixed note but Rupee depreciation kept a check on losses.


Copper

LME Copper prices traded lower by around 0.8 percent yesterday on the back of default concerns after the officials monitored debt proceedings in the biggest consumer, China. Also, fall in German trade balance along with mixed market sentiments in the earlier pert of trade acted as positive factors.

However, decline in LME inventories by 0.7 percent to 250,775 tonnes coupled with weakness in the DX capped further downside. Also, upbeat global market sentiments after easing of early interest rate hike concerns supported gains. The red metal touched an intra-day low of $6576.25/tonne and closed at $666/tonne on Wednesday.

MCX Copper prices fell by 0.6 percent yesterday and closed at Rs.404.2/kg after touching an intra-day low of Rs.401.3/kg in the last trading session.


Outlook

We expect LME Copper prices to trade on a positive note today on the back of favorable trade balance data from China. Also, estimates of fall in unemployment claims from the US in the evening session and positive French Industrial Production data along with weakness in the DX will support gains. Further, easing of interest rate hike concerns by the Fed will continue to act as a positive factor. However, mixed global markets sentiments will cap sharp upside.

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

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