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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 12, 2014)

February 12, 2014, Wednesday, 05:43 GMT | 00:43 EST | 10:13 IST | 12:43 SGT
Contributed by Angel Broking


Base Metals
 
Base metals on the LME traded on a positive note yesterday on the back of upbeat market sentiments. Further, statement by US Fed Chairperson Janet Yellen that slow pace of QE tapering to be continued in future supported an upside in the prices.
 
Additionally, weakness in the DX coupled with decline in LME inventories acted as a positive factor.
 
In the Indian markets, base metals traded on a negative note or upside in the prices was capped due to Rupee appreciation.
 
 
Copper
 
LME Copper prices gained around 0.1 percent yesterday taking cues from upbeat market sentiments. Further, weakness in the DX coupled with statement by US Fed Chairperson Janet Yellen that slow pace of QE tapering to be continued in future supported an upside in the prices.
 
Additionally, decline in LME copper inventories by 0.8 percent to 303,825 tonnes acted as a positive factor. The red metal touched an intra-day high of $7115/tonne and closed at $7106/tonne in yesterday’s trade.
 
In the Indian markets, copper prices declined around 0.6 percent due to Rupee appreciation and closed at Rs.441.90/kg after touching an intra-day low of Rs.441.25/kg on Tuesday.
 
 
Outlook
 
We expect base metals prices to trade on a positive note on account of weakness in the DX coupled with upbeat global market sentiments. Further, favorable trade balance data from China along with statement by US Fed Chairperson Janet Yellen that slow pace of QE tapering to be continued in future will support an upside in the prices. However, sharp upside in the prices will be capped due to forecast for decline in Euro Zone industrial production data along with weak economic data from the Japan. In the Indian markets, Rupee appreciation will cap sharp gains in the prices.