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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (December 31, 2013)

December 31, 2013, Tuesday, 05:38 GMT | 00:38 EST | 10:08 IST | 12:38 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME except for Aluminum traded on a negative note taking cues from mixed trend in inventories coupled with less than expected rise in US pending home sales data.

However, upbeat market sentiments along with weakness in the DX cushioned sharp fall in the prices of the base metals.

In the Indian markets, base metals traded lower except Aluminum.


Copper

LME Copper fell by 0.1 percent yesterday taking cues from less than expected rise in US pending home sales data.

However, sharp fall was restricted on the back of weakness in the DX coupled with decline in inventories by 0.9 percent to 367,450 tonnes supported gains in the metal. The red metal touched an intra-day low of $7355/tonne and closed at $7374.25/tonne on Monday.

MCX Copper prices fell by 0.4 percent yesterday touching an intra-day low of Rs.466.25/kg and closed at Rs.466.55/kg on Monday.


Outlook

We expect base metal prices to trade on mixed note today on the back of expectations of positive CB Consumer Confidence data from the US in the evening session. Also, weakness in the DX along with upbeat global market sentiments will support gains.

While on the other hand, less than expected rise in US pending home sales data yesterday coupled with forecast for decline in Chicago PMI from US in the evening session will exert downside pressure on the prices.

In the Indian markets, base metals will trade lower or gains will be capped due to Rupee appreciation.