New York: 01:43 || London: 06:43 || Mumbai: 10:13 || Singapore: 12:43

Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (December 30, 2013)

December 30, 2013, Monday, 04:45 GMT | 23:45 EST | 09:15 IST | 11:45 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME except Nickel traded on a positive note last week taking cues from easing of liquidity crunch in China, world's biggest consumer of the base metals. Also, positive economic data from the US and Euro Zone supported gains in the base metals. Further, weakness in the DX coupled with optimistic global market sentiments act ed as positive factors.

In the Indian markets, base metals apart from Nickel traded on a positive note but Rupee appreciation capped sharp gains.


Copper

LME Copper gained 2 percent last week as the People's Bank of China conducted the first reverse repurchase agreements by auctioning 29 billion Yuan ($4.8 billion) of seven-day reverse repos, thereby easing liquidity crunch and boosting demand for the red metal.

Also, positive home sales, durable goods and more than expected fall in jobless claims data from the US supported an upside in the prices. Upbeat global market sentiments along with weakness in the DX acted as positive factors.

Further, whopping decline in inventories by 3 percent to 370,950 tonnes led to gains. The red metal touched a weekly high of $7415.5/tonne and closed at $7382.5/tonne on Friday.

MCX Copper prices rose by 2.1 percent despite Rupee appreciation touching a weekly high of Rs.473.5/kg and closed at Rs.468.2/kg on Friday.


Outlook

We expect base metals to trade on a positive note today taking cues from weakness in the DX along with upbeat market sentiments. Further, China liquidity easing will act as a positive factor for the base metals. Additionally, forecast for rise in pending home sales data from the US in the evening session will support an upside in the prices. In the Indian markets, Rupee appreciation will restrict sharp upside movement in the base metals prices.