Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 12, 2013)

Contributed by Angel Broking

The base me tals pack traded on bearish note in yesterday's session on the account of concerns over the Euro zone debt woes. There were also subdued trade in China, the largest consumer of the industrial metal on the back of Lunar New Year holidays. Strength in the DX also supported to the decline in the base metal prices. However, decline in the LME inventories in most of the metals restricted fall in the base metal prices.

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

Copper

Copper prices declined 0.9 percent in yesterday's session. The decrease in the copper prices was on the back of renewed concerns over the debt woes in Europe. Copper prices were also influenced by the political scandal in Spain and elections in Italy.

The trading was also subdued on account of New Year holidays in China. Strength in the DX also contributed the fall in the copper prices. However, fall in the copper LME inventories restricted fall in the copper p rices.

LME Copper inventories declined marginally 0.01 percent yesterday and stood at 399,775 tonnes on Monday as against 399825 tonnes on 08th February 2013.

Copper prices on LME touched an intra-day low of $ 8,171 per tonne and closed at $ 8,201 per tonne on Monday. In the domestic markets MCX copper declined 0.6 percent and closed at Rs. 444 per kg on Monday tracking the international prices. Depreciation in the Indian rupee however restricted fall the MCX copper prices.

Outlook

In today's session, we expect base metals to trade lower due to subdued trading activity in China due to ongoing Lunar New Year festival. Renewed worries in the Euro zone region is also weighing on the prices. However, weakness in the DX might cushion fall in the prices. Appreciation in the Indian Rupee will exert downside pressure on the base metals prices on the MCX.