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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 17, 2014)

February 17, 2014, Monday, 05:03 GMT | 00:03 EST | 10:33 IST | 13:03 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a positive note last week taking cues from positive trade balance data from the biggest consumer, China. Also, favorable GDP data from Euro Zone along with upbeat market sentiments and weakness in the DX supported gains.

However, mixed economic data from the US along with negative industrial production data from the advanced economies prevented sharp gains.

In the Indian markets, base metals traded on a positive note but Rupee appreciation capped sharp gains.


Copper

LME Copper prices gained around 0.2 percent last week on the back of positive trade balance data from China and consumer confidence data from the US. Also, rise in risk appetite in the markets along with favorable growth data from the Euro Zone boosted demand for the red metal. Further, weakness in the DX along with decline in LME copper inventories by 2.8 percent to 299,125 tonnes acted as a positive factor.

However, negative retail sales data from the US along with unfavorable industrial production data from the advanced economies capped sharp gains. The red metal touched a weekly high of $7168/tonne and closed at $7150/tonne on Friday.

In the Indian markets, copper prices rose around 0.2 percent but Rupee appreciation restricted sharp positive movement. MCX Copper prices closed at Rs.445.80/kg after touching a weekly high of Rs.448/kg on Friday.


Outlook

We expect base metals prices to trade on a positive note today as a result of weakness in the DX along with upbeat market sentiments. Additionally, favorable economic data from China indicated that economy can sustain growth which supported an upside in the prices. However, less volatility will be observed as the US markets are closed today on the eve of President’s day. In the Indian markets, Rupee appreciation will keep a check on gains in the base metal prices.

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