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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (April 29, 2014)

April 29, 2014, Tuesday, 05:24 GMT | 00:24 EST | 08:54 IST | 11:24 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Zinc traded on a negative note yesterday taking cues from weak market sentiments on account of additional sanctions imposed by the US on Russia.

However, positive pending home sales data from the US along with weakness in the DX cushioned sharp downside. Further, decline in LME inventories acted as positive factors.

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


Copper

LME Copper prices fell by 0.4 percent in the last trading session on the back of weak demand concerns after a slew of sanctions were imposed by the US on Russia following escalation of crisis in Ukraine.

However, robust Pending Home Sales data from the US restricted sharp fall. Also, decline in LME inventories by 0.8 percent to 237,000 tonnes along with weakness in the DX acted as positive factors. The red metal touched an intra-day low of $6741.25/tonne before closing at $6745/tonne on Monday.

MCX Copper prices fell by around 0.6 percent and touched a low of Rs.415.5/kg before closing at Rs.415.9/kg in the last trading session.


Outlook

We expect LME Copper prices to trade on a mixed note today on the back of mixed global market sentiments which will exert downside pressure on prices. Also, expectations of mixed economic data from Euro Zone will act as a negative factor.

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

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