Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 01, 2013)

Contributed by Angel Broking

Base metal prices pared the earlier gains in the yesterday's session and ended on a negative note except for nickel. The metals declined on the back of concerns about the recovery of the US and China, the to p two consumers of the base metals. Rise in the metal inventories also pushed the prices downwards. However, weakness in the DX capped losses in the metal prices.

Copper

Copper prices decreased 0.5 percent in yesterday's session. The losses were due to weak sentiments among market participants on the recovery concerns of the US and China. The US unemployment filing for the benefits also rose by 38,000 to stand at 368,000 claims for the week ended Jan 24. Copper also fell on the back of Japanese industrial pr oduction which rose less than the forecasts at 2.5 percent in December. However, weakness in the DX capped losses in the copper prices.

LME Copper inventories gained 0.09 percent and stood at 371,750 in yesterday's session as compared to 371,425 tonnes on 30th January 2013. Copper prices on LME touched an intraday low of $8,165 per tonne and closed at $8199.75 per tonne on Thursday. In the domestic markets MCX copper rose 0.5 percent tracing bearishness in the international copper prices and closed at Rs. 440.1 per kg on Thursday. Appreciation in the Indian rupee restricted gains in the copper prices on MCX.

Outlook

In the intra-day session, we expect metal prices to trade on a negative note on the concerns about the recovery of the US and China. The Chinese manufacturing PMI unexpectedly declined to 50.4 levels in the month of January on the back of decline in the export orders and slower production. Weakness in the DX might also cushion fall in the metal prices. Depreciation in the Indian rupee might cushion fall in the MCX base metals prices.