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Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 25, 2013)

February 25, 2013, Monday, 10:45 GMT | 05:45 EST | 15:15 IST | 17:45 SGT
Contributed by Angel Broking


The base metals pack traded on a negative note on the back of negative statement from US Federal Reserve that it may stop bond buying program along with unfavourable economic data from the US and Euro Zone.

Further, stre ngth in the DX also exerted downside pressure on the prices. Additionally, rising LME inventories also acted as a negative factor for the prices.

In the Indian markets, appreciation in the Rupee added downside pressure on the prices.


Copper

Copper the leader of the base metal pack declined by 5.1 percent in the last week on account of decline in manufacturing PMI economic data from the US and Euro Zone.

In addition, strength in the DX and marginal rise in the LME copper inventories by 0.1 percent which stood at 424,350 tonnes also acted as a ne gative factor for the prices.

The red metal touched a low of $7,796/tonne in the last week and closed at $7,817.25/tonne in the last trading session. On the domestic fro nt, prices fell by 5.5 percent as a result of appreciation in the Indian Rupee and closed at Rs.423.55/kg on Friday after touching a low of Rs.423/kg in the last week.


Copper Inventories

LME copper inventories gained 0.1 percent week on week and stood at 424,350 tonnes as on 22nd February, 2013 as against 401,675 tonnes on 15th February, 2013.

Copper inventories in the warehouse monitored by the Shanghai fell by 5.6 percent and stood at 207,709 tonnes for the week ending on 8th February, 2013.


Outlook

In the intra-day, we expect base metals prices to trade lower on the back of China's manufacturing PMI data coming on a negative note. However, sharp downside will be cushioned as a result of upbeat global market sentiments coupled with weakness in the DX. Appreciation in the Indian Rupee will add downside pressure on the MCX.