New York: 16:48 || London: 21:48 || Mumbai: 01:18 || Singapore: 03:48

Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (December 24, 2013)

December 24, 2013, Tuesday, 10:31 GMT | 05:31 EST | 15:01 IST | 17:31 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note yesterday taking cues from mixed economic data from the US. Also, mixed trend in LME inventories led to decline in the base metals prices. Further, upbeat global market sentiments along with weakness in the DX cushioned sharp fall in prices.

In the Indian markets, base metals traded on a mixed note but Rupee appreciation acted as a negative factor.


Copper

LME Copper prices traded higher by 0.1 percent yesterday taking cues from weakness in the DX coupled with upbeat global market sentiments. Also, decline in LME inventories by 0.9 percent to 379,100 tonnes will add an upside in prices.

However, mixed economic data from the US capped sharp gains in prices of the red metal. The metal touched an intra-day high of $7260/tonne and closed at $7240/tonne on Monday.

MCX Copper prices fell by 0.4 percent owing to Rupee appreciation touching an intra-day low of Rs.456.3/kg and closed at Rs.457.05 on Monday.


Outlook

We expect base metals to trade on a positive note on the back of easing of liquidity crunch by the People Bank of China, thereby boosting demand for the base metals. Forecast for favorable core durable and durable goods orders data from the US in the evening session will add upside support to the prices. Further, weakness in the DX coupled with upbeat global market sentiments will support an upside in the prices. Additionally, estimates of rise in new home sales data of the US will act as a positive factor.

In the Indian markets, Rupee appreciation will cap sharp gains in the prices.