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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (April 16, 2014)

April 16, 2014, Wednesday, 05:32 GMT | 00:32 EST | 09:02 IST | 11:32 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a negative note yesterday taking cues from mixed economic data from the US. Also, strength in the DX along with mixed economic data from UK and Euro Zone acted as a negative factor.

However, sharp losses were cushioned on the back of rise in risk aversion in the market sentiments in the earlier part of trade along with declining trend in LME inventories.

In the Indian markets, base metals traded lower in line with international markets.


Copper

LME Copper prices plunged by 1.5 percent yesterday on the back of mixed economic data from the US, UK and Euro Zone. Also, strength in the DX exerted downside pressure on prices.

However, upbeat global market sentiments in the latter part of trade coupled with decline in inventories by 0.9 percent to 242,775 tonnes restricted sharp downside. The red metal touched an intra-day low of $6513.25/tonne and closed at $6560/tonne on Tuesday.

MCX Copper prices fell by 1.7 percent yesterday and touched an intra-day low of Rs.396.2/kg before closing at Rs.399.95/kg on Tuesday.


Outlook

We expect LME Copper prices to trade lower today on the back of weak GDP and industrial production data from the biggest consumer, China that pointed towards slowdown in the economy. Also, strength in the DX along with mixed market sentiments will act as a negative factor.

Further, estimates of mixed economic data from the US, UK and Euro Zone will exert downside pressure on prices.

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