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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (April 23, 2014)

April 23, 2014, Wednesday, 05:59 GMT | 00:59 EST | 09:29 IST | 11:59 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Copper traded on a positive note yesterday taking cues from rise in risk appetite in the markets in the earlier part of trade. Also, favorable Existing Home Sales data from the US supported gains.

Further, strength in the DX along with mixed LME inventories data could not exert downside pressure on prices.

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


Copper

LME Copper prices fell by 0.2 percent yesterday on the back of strength in the DX.

However, sharp downside was cushioned owing to less than expected decline in Existing Home Sales data from the US. Also, decline in inventories coupled with upbeat global market sentiments in the earlier part of trade acted as positive factors. The red metal touched an intra-day high of $6670.15/tonne and closed at $6657.5/tonne on Tuesday.

MCX Copper prices jumped by 0.9 percent yesterday and touched an intra-day high of Rs.411.3/kg before closing at Rs.411/kg in the last trading session.


Outlook

We expect LME Copper prices to trade higher today on the back of expectations of positive manufacturing data from the US and Euro Zone. Also, gain in manufacturing data from China will support upside in prices.

Further, weakness in the DX along with upbeat market sentiments will act as positive factors.

In the Indian markets, Rupee depreciation will support gains in prices.