Industrial metals (copper, aluminium, nickel, etc.) daily review (February 10, 2014)
February 10, 2014, Monday, 06:20 GMT | 01:20 EST | 10:50 IST | 13:20 SGT
Base metals on the LME traded on a positive note in the last week on the back of rise in risk appetite in the markets leading to increase in demand for the base metals. Also, weakness in the DX along with positive construction data from UK acted as supportive factors. Additionally, decline in inventories supported gains in the base metals.
However, negative manufacturing data from the US and UK along with negative industrial production data from Germany capped sharp gains.
In the Indian markets, base metals except Copper traded higher despite Rupee appreciation.
LME Copper traded higher by 1.3 percent taking cues from recovery in market sentiments in the latter part of the week. Also, weakness in the DX along with positive construction data from UK supported gains in the red metal. Decline in LME copper inventories by 2 percent in the last week acted as a positive factor.
Further, negative manufacturing data from the US and UK could not exert downside pressure on prices. The metal touched a weekly high of $7210/tonne and closed at $7133/tonne on Friday.
MCX Copper prices fell by 0.1 percent in the last week owing to Rupee appreciation touching a weekly low of Rs.440.7/kg and closing at Rs.444.7/kg on Friday.
We expect base metals to trade on a mixed note today. Recovery in the market sentiments coupled with weakness in the DX will support gains. While on the other hand, expectations of negative French industrial production will exert downside pressure on prices.
In the Indian markets, Rupee appreciation will exert downside pressure on prices.