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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (December 12, 2013)

December 12, 2013, Thursday, 05:25 GMT | 00:25 EST | 09:55 IST | 12:25 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 supported an upside in the base metals.

However, sharp gains were capped on the back of weak global market sentiments on account of concerns of QE tapering by the Federal Reserve.

In the Indian markets, base metals traded on a positive note yesterday due to Rupee depreciation.


Copper

LME Copper prices rose by 0.5 percent taking cues from weakness in the DX. Further, decline in inventories by 0.5 percent to 399,875 tonnes supported an upside in prices of the red metal.

However, weak global market sentiments due to fears of early QE taper capped sharp gains. The metal touched an intra-day high of $7221/tonne and closed at $7217/tonne on Wednesday.

MCX Copper contract prices jumped by 1.5 percent yesterday owing to Rupee depreciation touching an intra-day high of Rs.454.8/kg and closed at Rs.454.5/kg.


Outlook

From the intra-day perspective, we expect base metals prices to trade on a mixed note on the back of expectations of positive retail sales data from the US and industrial production data from Euro Zone will push upside in the prices. While on the other hand, weak market sentiments due to heightened concerns of QE tapering by the Federal Reserve will cap sharp gains or even reversal in the prices. Also, strength in the DX will act as a negative factor.

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