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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (April 11, 2014)

April 11, 2014, Friday, 05:44 GMT | 00:44 EST | 09:14 IST | 11:44 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a positive note yesterday taking cues from positive jobless claims data from the US. Also, weakness in the DX coupled with decline in inventories acted as a positive factor.

However, weak global market sentiments along with weak French industrial production data restricted sharp gains in prices.

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


Copper

LME Copper prices gained around 0.4 percent yesterday as the unemployment claims in the US fell to a 7-year low, thereby pointing towards improving economy and brightened prospects for the red metal. Also, weakness in the DX coupled with 0.3 percent decline in inventories to 250,025 tonnes supported gains.

However, rise in risk aversion in the markets along with unfavorable French Industrial Production capped sharp gains. The red metal touched an intra-day high of $6660/tonne and closed at $6650/tonne on Thursday.

MCX Copper prices fell by 0.6 percent yesterday on account of Rupee depreciation and closed at Rs.406.45/kg after touching an intra-day high of Rs.406.9/kg in the last trading session.


Outlook

We expect LME Copper prices to trade on a mixed note today on the back of unfavorable inflation data from China that will exert downside pressure on prices. Also, weak global market sentiments will act as a negative factor.

While on the other hand, expectations of favorable economic data from the US in the evening session along with weakness in the DX will cushion sharp downside or even reversal in prices.

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

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