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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (December 18, 2013)

December 18, 2013, Wednesday, 06:39 GMT | 01:39 EST | 11:09 IST | 13:39 SGT
Contributed by Angel Broking


Base Metals

Base metals pack on the LME traded on a positive note yesterday except Copper taking cues from positive economic data from the Euro Zone and the US.

However, mixed inventories data along with weak global market sentiments capped sharp upside in the metals.

In the Indian markets, base metals traded on a mixed note. Rupee depreciation cushioned sharp fall in prices on the MCX.


Copper

LME Copper fell by 0.2 percent yesterday taking cues from fears of early QE taper by the Federal Reserve in its meeting today after strings of positive economic data from the US. Further, strength in the DX acted as a negative factor.

However, positive economic data from the Euro Zone and UK prevented sharp downside in the prices. Additionally, decline in LME copper inventories by 0.7 percent to 386,550 tonnes restricted sharp fall in the prices. The red metal touched an intra-day low of $7259.75/tonne and closed at $7272.5/tonne on Tuesday.

MCX Copper prices declined by 0.4 percent yesterday touching an intra-day low of Rs.458.10/kg and closed at Rs.458.60/kg in yesterday’s trade.


Outlook

From the intra-day perspective, we expect base metal prices to trade lower today taking cues from mixed market sentiments as investors are cautious ahead of the US Federal Reserve meeting today and concerns of QE tapering by the central bank. Additionally, forecast for decline in Building Permits data from the US in the evening session will exert downside pressure on the prices. Further, strength in the DX will act as a negative factor. However, sharp downside in the prices will be prevented on the back of expectations of favorable German Ifo Business Climate data. In the Indian markets, Rupee depreciation will restrict sharp downside in the prices.