Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (August 31, 2012)

Contributed by Angel Broking

The base metals pack traded on negative note yesterday on the back of rise in risk aversion in the global markets along with strength in the DX. However, sharp downside in the prices was cushioned on account of decline in LME inventories apart from Nickel.

In the Indian markets depreciation in the Rupee cushioned sharp fall in the prices.

Copper

Copper, the leader of the base metals complex declined by 0.1 percent yesterday on the back of weak global market sentiments coupled with strength in the DX.

However, sharp fall in the prices was restricted taking cues from sharp decline in LME copper inventories by 1.6 percent which stood at 230,175 tonnes. The red metal touched an intra-day low of $7,536/tonne and closed at $7,570.0/tonne in yesterday's trading session.

On the domestic front, prices gained by 0.1 percent due to dep reciation in the Indian rupee and closed at Rs.423.20/kg after touching an intra-day high of Rs.427.5/kg on Thursday.

Outlook

From the intra-day perspective, we expect base metal prices to trade bearish on account of negative global market sentiments along with strength in the DX. Further slowdown in the Asian economies might also act as a bearish factor for the base metal prices. In the Indian markets depreciation in the Rupee might cushion sharp fall in the base metals prices on the MCX.