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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (December 19, 2013)

December 19, 2013, Thursday, 06:12 GMT | 01:12 EST | 10:42 IST | 13:12 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a positive note yesterday taking cues from favorable economic data from the US, UK and Euro Zone. Also, decline in inventories of the base metals coupled with upbeat market sentiments in the later part of the trade supported gains in prices.

In the Indian markets, base metals traded higher owing to Rupee depreciation.


Copper

LME Copper gained 0.1 percent yesterday on the back of positive Building Permits and Housing Starts data from the US. Also, upbeat data from the Euro Zone and UK supported gains. Further, decline in inventories by 0.4 percent to 384,950 tonnes acted as positive factor. However, strength in the DX capped sharp gains in the prices. The red metal touched an intra-day high of $7280/tonne and closed at $7277/tonne on Wednesday.

MCX Copper prices rose by 0.4 percent yesterday on Rupee depreciation touching an intra-day high of Rs.461.8/kg and closed at Rs.461.5/kg.


Outlook

We expect base metals to trade on a mixed note today on the back of expectations of positive Philly Fed Manufacturing Index from the US in the evening session. Also, weakness in the DX as the Fed assured of lower interest rates for longer period will support an upside in the prices. Additionally, estimates of favorable economic data from the Euro Zone and UK will act as a positive factor. Declining trend in inventories will lead to positive sentiments in the prices.

However, sharp upside in the prices will be capped or reversal can be seen due to forecast for weak existing home sales data from the US.