Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 13, 2013)

Contributed by Angel Broking

The base metals pack bounced back from the earlier losses and ended yesterday's session in the positive terrain. Weakness in the DX along wit h expectation of rise in the demand from the Chinese buyers after the end of the Lunar New year supported the prices to move upwards. Further, signs of recovery in US as the company earnings and business sentiments in the nation are improving which also added to the gains in the base metals prices.

Appreciation in the Indian Rupee however, capped gains in the base metals pack on the MCX.

Copper

Copper prices rose 0.5 percent in yesterday's session. Expectation of rise in the demand from the Chinese buyers after the Lunar New Year holidays supported an upside in the copper prices today. Weakness in the DX further added to the gains in the red metal. Company earnings and business investments in the US are witnessing an improvement which is showcasing that the economy is on the path of recovery and thereby demand for the red metal.

However, rise in the copper inventories on the LME marginally by 0.01 percent restricted the gains in the copper prices in yesterday's session.

LME Copper inventories increased 0.01 percent yesterday and stood at 399,8850 tonnes on Tuesday as against 399,775 tonnes on 11th February 2013.

Copper prices on LME touched an intra-day high of $8,251.25 per tonne and closed at $8,241.25per tonne on Monday. In the domestic markets MCX copper rose 0.3 percent and closed at Rs. 445.2 per kg on Tuesday tracking the international prices. However, appreciation in the Indian rupee restricted gains in the copper prices on the MCX.

Outlook

In today's session, we expect base metals to trade higher due to positive global market sentiments along with weakness in the DX. Hopes of probable increase in demand for the base metals from the Chinese buyers after the Lunar New Year holidays ends is also expected to add to the gains. Appreciation in the Indian Rupee however, might cap gains in the base metals prices on the MCX.