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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (December 20, 2013)

December 20, 2013, Friday, 05:07 GMT | 00:07 EST | 09:37 IST | 12:07 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a negative note yesterday taking cues from QE taper of $10 billion by the Federal Reserve. Additionally, weak economic data from the US along with strength in the DX led to decline in the base metals. Also, mixed trend in inventories of the base metals coupled with weak market sentiments in later part of the trade exerted downside pressure on prices.

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

 
Copper 

LME Copper declined by 0.7 percent yesterday on the back of negative existing home sales and Philly Fed Manufacturing data from the US. Also, weak global market sentiments in later part of the trade along with strength in the DX acted as negative factors. Further, favorable retail sales data from the UK coupled with decline in inventories by 0.3 percent to 383,925 tonnes could not provide respite to the falling prices. The red metal touched an intra-day high of $7176/tonne and closed at $7225.5/tonne on Thursday.

MCX Copper prices fell by 0.2 percent touching an intra-day low of Rs.457.5/kg but Rupee depreciation prevented sharp fall in yesterday’s trade.


Outlook

We expect base metals to trade on a mixed note today on the back of QE tapering of $10 billion by the Federal Reserve will lead to weak market sentiments along with strength in the DX will add downside pressure on the prices. Additionally, unfavorable home sales and manufacturing data from the US in yesterday’s trade will act as a negative factor. While on the other hand, expectations of positive Gross Domestic Product (GDP) data from the US and forecast for favorable economic data from UK and Euro Zone will support an upside in the prices. In the Indian markets, Rupee depreciation will lead to positive movement in the prices.

Base Metals

Base metals on the LME traded on a negative note yesterday taking cues from QE taper of $10 billion by the Federal Reserve. Additionally, weak economic data from the US along with strength in the DX led to decline in the base metals. Also, mixed trend in inventories of the base metals coupled with weak market sentiments in later part of the trade exerted downside pressure on prices.

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


Copper

LME Copper declined by 0.7 percent yesterday on the back of negative existing home sales and Philly Fed Manufacturing data from the US. Also, weak global market sentiments in later part of the trade along with strength in the DX acted as negative factors. Further, favorable retail sales data from the UK coupled with decline in inventories by 0.3 percent to 383,925 tonnes could not provide respite to the falling prices. The red metal touched an intra-day high of $7176/tonne and closed at $7225.5/tonne on Thursday.

MCX Copper prices fell by 0.2 percent touching an intra-day low of Rs.457.5/kg but Rupee depreciation prevented sharp fall in yesterday’s trade.


Outlook

We expect base metals to trade on a mixed note today on the back of QE tapering of $10 billion by the Federal Reserve will lead to weak market sentiments along with strength in the DX will add downside pressure on the prices. Additionally, unfavorable home sales and manufacturing data from the US in yesterday’s trade will act as a negative factor. While on the other hand, expectations of positive Gross Domestic Product (GDP) data from the US and forecast for favorable economic data from UK and Euro Zone will support an upside in the prices. In the Indian markets, Rupee depreciation will lead to positive movement in the prices.