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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (December 10, 2013)

December 10, 2013, Tuesday, 05:17 GMT | 00:17 EST | 09:47 IST | 12:17 SGT
Contributed by Angel Broking


Base Metals

Base metals traded on a positive note yesterday taking cues from weakness in the DX. Also, decline in LME inventories except Nickel coupled with upbeat global market sentiments supported gains in base metals.

However, sharp gains were capped on the back of unfavorable German industrial production data.

In the Indian markets, base metals traded on a positive note but Rupee appreciation restricted sharp positive movement.


Copper

LME Copper prices rose by 0.5 percent taking cues from weakness in the DX along with upbeat global market sentiments. Also, decline in inventories by 0.7 percent to 405,275 tonnes supported an upside in prices of the red metal.

However, unfavorable industrial production data from Germany capped sharp gains. The metal touched an intra-day high of $7149/tonne and closed at $7144/tonne on Monday.

MCX Copper contract traded lower by 0.1 percent on Rupee appreciation touching an intra-day low of Rs.443.7/kg and closed at Rs.445.8/kg on Monday.


Outlook

From the intra-day perspective, we expect base metals prices to trade on a mixed note on the back of weakness in the DX coupled with more than expected rise in Chinese exports in yesterday’s trade. Also, forecast for favorable industrial production data from France and Italy coupled with upbeat economic data from the US in the last week will support an upside in the prices. However, sharp upside in prices will be capped or reversal can be seen due to mixed market sentiments, expectations of decline in China’s industrial production data along with anticipation of slow rise in manufacturing and industrial production data from the UK.

In the Indian markets, Rupee appreciation will cap sharp gains in the prices.