Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 06, 2013)

Contributed by Angel Broking

Base Metals

The base me tals pack traded on a flat note in yesterday's trade on the back of signs of economic recovery in the Euro Zone along with weakness in the DX. While on the other hand, decline in US ISM non-manufacturing PMI added downside pressure on the prices.

Apart from that, mixed LME inventories also acted as a negative factor for the prices. Appreciation in the Indian Rupee exerted downside pressure on the MCX.

Copper

LME Copper prices traded on a flat note and gained marginally around 0.01 percent yesterday on the back of signs of economic recovery in the Euro Zone along with weakness in the DX.

However, sharp upside in the prices was capped on account of rise in LME Copper inventories around 3 percent which stood at 385,050 ton nes. The red metal touched an intra-day high of $8,312/tonne and closed at $8,288.30/tonne in yesterday's trading session.

On the domestic front, prices declined by 0.6 percent on the back of appreciation in the Indian Rupee and closed at Rs.442.60/kg after touching an intra-day low of Rs.442/kg on Tuesday.

Outlook

In today's session, we expect base metals to trade on a positive note on the back of upbeat global market sentiments. Additionally, signs of economic recovery from the Euro Zone along with weakness in the DX also supported an upside in the base metal prices. Appreciation in the Indian Rupee will cap sharp gains in the prices on the MCX.