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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (December 26, 2013)

December 26, 2013, Thursday, 06:08 GMT | 01:08 EST | 10:38 IST | 13:08 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note on Tuesday taking cues from positive economic data from the US. Also, upbeat global market sentiments acted as a positive factor. Further, mixed trend in LME inventories coupled with strength in the DX restricted sharp positive movement.

In the Indian markets, base metals traded on a positive note apart from Nickel despite Rupee appreciation.


Copper

LME Copper prices traded higher by 0.6 percent taking cues from positive home sales and durable goods data from the US, that led to positive demand outlook for the red metal. Also, optimistic market sentiments supported gains.

However, strength in the DX coupled with mixed inventories data acted as negative factors. The metal touched an intra-day high of $7292.25/tonne and closed at $7286.5/tonne on Tuesday.

MCX Copper prices jumped by around 2 percent despite Rupee appreciation touching an intra-day high of Rs.473.5/kg and closed at Rs.465.8/kg on Tuesday.


Outlook

We expect base metals to trade on a positive note today on the back of estimates of decline in unemployment claims. Also, weakness in the DX along with upbeat market sentiments will support base metal prices. Further, easing of liquidity crunch by China, the biggest consumer, on Monday will continue to support prices. Additionally, favorable economic data from the US on Tuesday will act as appositive factor. However, less volatility will be observed as UK and European markets closed today on eve of Boxing Day holiday

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