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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 14, 2014)

February 14, 2014, Friday, 05:31 GMT | 00:31 EST | 10:01 IST | 12:31 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note yesterday as weakness in the DX along with positive Chinese trade balance data led to gains in the earlier part of trade.

While on the other hand, weak market sentiments in early part of the trade, mixed inventories data along with unfavorable retail sales data from the US in the evening session either capped or wiped out gains.

In the Indian markets, base metals except Nickel traded on a positive note owing to Rupee depreciation.


Copper

LME Copper prices fell around 0.1 percent yesterday on the back of negative retail sales data from the second biggest consumer, the US. Also, rise in risk aversion in the markets in early part of the trade acted as a negative factor.

However, weakness in the DX coupled with decline in LME copper inventories by 0.5 percent to 300,675 tonnes restricted sharp downside movement in prices. The red metal touched an intra-day low of $7038.25/tonne and closed at $7141.8/tonne on Thursday.

In the Indian markets, copper prices rose around 0.1 percent taking cues from Rupee depreciation and closed at Rs.446.30/kg after touching an intra-day high of Rs.447.45/kg on Thursday.


Outlook

We expect base metals prices to trade on a mixed note today as weakness in the DX along with expectations of favorable Prelim UoM Consumer Sentiment will support upside in the prices. Further, forecast for rise in the economic growth from the Euro Zone will act as appositive factor. While on the other hand, mixed market sentiments along with estimates of mixed economic data from the US in the evening session and China will exert downside pressure on prices. In the Indian markets, Rupee appreciation will keep a check on gains in the base metal prices.