Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 08, 2013)

Contributed by Angel Broking

The base me tals pack traded on bearish note in yesterday's session except for aluminium which gained in yesterday's session. The decline in the base metals was on account of comments by the ECB President raising concerns about the strength in the currency, Euro. Strength in the DX also supported decline in the base metal prices.

Subdued tra ding activity in Chinese market ahead of Lunar New Year festival in the next week also added to the losses in the base metals.

Depreciation in the Indian Rupee cushioned fall in the base metals pack on the MCX.

Copper

Copper prices declined 0.3 percent in yesterday's session. The red metal tracked the comments by the ECB President about the concerns on the strength in the Euro. Dull appetite by the Chinese buyers ahead of Lunar New Year festival and strength in the DX weighed on the prices. Continued rise in the LME inventories of copper also acted as a bearish factor for the copper prices.

LME Copper inventories increased 0.37 percent yesterday and stood at 386,500 tonnes on Wednesday as against 38,050 tonnes on 05th Febr uary 2013.

Copper prices on LME touched an intra-day low of $8,190 per tonne and closed at $8,210 per tonne on Thursday. In the domestic markets MCX copper increased 0.4 percent and closed at Rs. 441.4 per kg on Thursday. Depreciation in the Indian rupee had supported the prices to move upwards.

Outlook

In today's session, we expect base metals to trade higher taking cues from positive exports data from the China along with weakness in DX. However, subdued trading activity in China ahead of Lunar New Year festival in the next week is expected to cap gains in the prices. Depreciation in the Indian Rupee will support an upside in the base metals prices on the MCX.