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Industrial metals (copper, aluminium, nickel, etc.) daily review (December 17, 2012)

December 17, 2012, Monday, 09:24 GMT | 04:24 EST | 13:54 IST | 16:24 SGT
Contributed by Angel Broking

The base metals pack traded on a positive note taking cues from favourable data from China and from the positive sentiments created by the news that Greece will receive the aid. The weakness in the DX also supported an upside in the base metals prices.

Depreciation in the Indian Rupee supported an upside in the MCX base metals prices.


Copper prices increased 0.4 percent week on week and closed at $8,073/tonne on Friday. Prices gained taking cues from the favourable data from the China where the nation's HSBC flash Manufacturing PMI displayed an increase. Greece aid was also approved and the country would receive 49.1 billion of which 34.3 billion would be disbursed in the first quarter 2013.

Weakness in the DX, also acted as a supportive factor for the copper prices. However, rise in the copper inventories on LME restricted gains in the copper prices during the last week.

Copper inventories on LME increased by 5.3 percent in last week and stood at 2, 72,800 tonnes on Friday as against 2, 59,050 tonnes on 7th December 2012 (previous Friday).

Prices of Copper on LME touched a weekly high $8,162 per tonne and closed at $8,073/tonne on Friday. In the domestic markets, MCX copper rose 0.5 percent taking cues from strength in the international prices along with depreciation in the Indian rupee. In the domestic markets prices of Copper on MCX touched a weekly high of Rs.450.5 per kg and closed at Rs. 445.8 per kg on Friday.


From the intraday perspective, base metal prices are expected to trade with a positive bias taking cues from favourable economic data from the US and China along with grant of aid to Greece shortly. Further with Japan Liberal Democratic party coming into power, hopes of stimulus measures to revive the economy have increased. This might support an upside in the base metals pack. Strength in the DX may however restrict gains of the base metal prices. Depreciation in the Rupee will act as a supportive factor for the base metal prices on MCX.