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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (December 11, 2013)

December 11, 2013, Wednesday, 04:58 GMT | 23:58 EST | 09:28 IST | 11:58 SGT
Contributed by Angel Broking


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 in early part of the trade supported an upside in the base metals.

However, sharp gains were capped on the back of weak economic data from China and Euro Zone.

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


Copper

LME Copper prices rose by 0.5 percent taking cues from positive growth outlook by the Asian Development Bank for the biggest consumer China. Also, weakness in the DX along with decline in inventories by 0.8 percent to 402,050 tonnes supported an upside in prices of the red metal.

However, mixed industrial production data from China and Euro Zone coupled with weak global market sentiments capped sharp gains. The metal touched an intra-day high of $7188/tonne and closed at $7163.75/tonne on Tuesday.

MCX Copper contract prices traded higher by 0.4 percent yesterday despite Rupee appreciation touching an intra-day high of Rs.449.1/kg and closed at Rs.447.75/kg.


Outlook

From the intra-day perspective, we expect base metals prices to trade on a mixed note on the back of positive growth outlook for China which will support an upside in the prices. While on the other hand, weak market sentiments due to concerns of QE tapering by the Federal Reserve will cap sharp gains or even reversal in the prices. Strength in the DX will also act as a negative factor.

In the Indian markets, Rupee depreciation will support an upside in the prices.