New York: 14:56 || London: 19:56 || Mumbai: 23:26 || Singapore: 01:56

Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (August 04, 2014)

August 4, 2014, Monday, 04:49 GMT | 23:49 EST | 08:19 IST | 10:49 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded largely traded on a negative note last week on the back of mixed economic data from the US and Euro Zone. Also, mixed trend in LME inventories along with strength in the DX acted as a negative factor.

However, positive manufacturing data from China along with strong recovery in the US economy as affirmed by the FOMC restricted sharp fall in prices.

In the Indian markets, all the base metals except Lead traded on a negative note taking cues from weakness in international markets.


Copper

LME Copper prices fell by 0.7 percent last week owing to unfavorable jobs data from the US and weak manufacturing data from Euro Zone. Further, surplus concerns as the world's top copper producer Freeport-McMoRan Inc clinched a deal with the Indonesian government to allow the miner to resume copper concentrate exports in August coupled with rise in risk aversion in the markets acted as negative factors.

However, decline in LME inventories by more than 3 percent along with strong rebound in the US and China restricted sharp fall in prices. The red metal touched a weekly low of $7045/tonne before closing at $7076.5/tonne in the last session.

MCX Copper prices gained 0.8 percent taking cues from Rupee depreciation and closed at Rs.435.3/kg on Friday.


Outlook

We expect LME copper prices to trade on a negative note today as rise in risk aversion after Portugal’s central bank took control of Banco Espirito Santo SA in a 4.9 billion-euro bailout that will leave junior bondholders with losses along with rising supply concerns will exert downside pressure on prices. Also, weak employment data from the US fuelled concerns regarding uneven recovery in the economy and will act as a negative factor.

MCX Copper prices will trade on a negative note today taking cues from weakness in international markets.

Stock Market Forum