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Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (August 28, 2014)

August 28, 2014, Thursday, 07:21 GMT | 02:21 EST | 11:51 IST | 14:21 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note yesterday as a strengthening dollar amid easing of geopolitical tensions in Ukraine and the Middle East weighed on prices. Also, mixed trend in LME stocks acted as a negative factor.

However, consistent positive data flows from the US along with the expectation th e European Central Bank will come out with stimulus measures supported base metals.

MCX base metals traded mixed yesterday in line with trend in international markets.


Copper

LME Copper p rices slipped by 0.5 percent yesterday after a report showed profit growth at industrial companies in China slowed to 13.5 percent in July from 17.9 percent in June, the fastest rate in seven months. Also, weak German Consumer Climate data coupled with 0.8 percent gain in inventories exerted downside pressure on prices.

However, expectations of prompt supportive action from Beijing, with officials steppi ng in to ensure the economy achieved its 7.5% annual growth target restricted sharp fall. The red metal touched an intra-day low of $6994/tonne on Wednesday.
On the MCX, red metal prices plunged by 0.7 percent and touched an intra-day low of Rs.421.75/kg before closing at Rs.422.9/kg on Wednesday.


Outlook

From the intra-day perspective, we expect copper prices to trade lower today ahead of economic expansion data from the US. Also, sluggish Chinese industrial profit growth will exert downside pressure on prices.

However, estimates of favorable pending Home Sales will provide a cushion to prices.

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