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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (August 22, 2014)

August 22, 2014, Friday, 05:08 GMT | 01:08 EST | 09:38 IST | 12:08 SGT
Contributed by Angel Broking


Base Metals

LME base metals apart from Copper traded on a negative note in yesterday’s trade as poor Chinese data deepened fears about an economic slowdown in the biggest consumer. Also, mixed trend in LME inventories acted as a negative factor.

However, favorable economic data from the US pointed towards robust growth in the second biggest consumer and cushioned sharp downside in prices. Further, upbeat market sentiments along with weakness in the DX acted as positive factors.

MCX base metals traded lower in line with trend in international markets.


Copper

LME Copper prices rose 0.1 percent on speculation that rising home sales signal improving demand in the U.S., the world’s top metals user after China. Further, fall in unemployment claims along with strong manufacturing data from the US pointed towards recovery in the major consumer.

However, sharp upside in the prices was capped owing to weak manufacturing data from China. Also, gain of 0.8 percent in LME stocks acted as a negative factor.

On the MCX, red metal prices fell by 0.1 percent and closed at Rs.424.8/kg after touching an intra-day low of Rs.422.45/kg on Thursday.


Outlook

From the intra-day perspective, we expect copper prices to trade sideways today as major commodities trading house and miner Glencore gave a bright view of the copper market, forecasting strong demand from both China and the West in the second half. Also, data from the US which is pointing towards recovery will support gains.

While on the other hand, weakness in the Chinese economy will act as a negative factor.

In the Indian markets, Copper prices will trade sideways in line with international trends.

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