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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 13, 2014)

February 13, 2014, Thursday, 05:26 GMT | 00:26 EST | 09:56 IST | 12:26 SGT
Contributed by Angel Broking


Base Metals
 
Base metals on the LME traded on a positive note yesterday on the back of positive trade balance data from China. Further, upbeat global market sentiments in the earlier part of trade supported gains in base metals.
 
However, unfavorable industrial production data from Euro Zone capped sharp gains.
 
In the Indian markets, base metals traded on a positive note but Rupee appreciation restricted sharp upside in prices.
 
 
Copper
 
LME Copper prices gained around 0.6 percent yesterday as the refined Copper imports by China reached an all time high of 536,000 tonnes in January, thereby indicating strong demand for the metal. Further, rise in risk appetite in the markets in the earlier part of trade coupled with decline in LME copper inventories by 0.6 percent to 302,050 tonnes acted as a positive factor.
 
However, negative industrial production data from Euro Zone restricted sharp positive movement. The red metal touched an intra-day high of $7160/tonne and closed at $7148.8/tonne in yesterday’s trade.
 
In the Indian markets, copper prices jumped around 0.9 percent despite Rupee appreciation and closed at Rs.445.90/kg after touching an intra-day high of Rs.446.25/kg on Wednesday.
 
 
Outlook
 
We expect base metals prices to trade on a positive note on account of weakness in the DX. Also, positive trade balance data by China that came yesterday will continue to act as a positive factor. However, sharp upside in the prices will be capped due to forecast for decline in core retail sales and retail sales data from the US in the evening session along with mixed global market sentiments. In the Indian markets, Rupee appreciation will cap sharp gains in the prices.