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Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (August 19, 2014)

August 19, 2014, Tuesday, 05:35 GMT | 00:35 EST | 10:05 IST | 12:35 SGT
Contributed by Angel Broking


Base Metals

Base metals on the London Metal Exchange traded on a mixed note yesterday owing to rise in risk appetite following news of talks between Russia and Ukraine that supported an upside in the base metals.

Nickel prices fell after inventories continued to rise and jump by 2,256 tonnes to a record high 324,984 tonnes, highlighting an overhang of supply.

Zinc rose after data showed that the metal mainly used for galvanising steel was in a deficit of 234,000 tonnes in January to June.


Copper

LME Copper prices gained 0.3 percent on Monday as some investors regarded recent losses as overdone.

However, sharp gains were capped after new home prices in top metal consumer China fell in July for the third month in a row.

Also, Chile's gross domestic product grew at its weakest pace since 2009 in the second quarter as investment waned and a previously rapid expansion in consumer spending slowed, exerted downside pressure on prices. The red metal touched an intra-day low of $6930/tonne before closing at $6895/tonne.


Outlook

We expect LME copper prices to trade lower today as the demand concerns from China continue to haunt as a worsening property downturn that is increasingly dragging on the broader economy.

However, estimates of favorable Building Permits and Housing Starts data from the US in the evenings session will cushion sharp downside in prices.

In the Indian markets, base metals will trade lower taking cues from international markets.