Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 26, 2013)

Contributed by Angel Broking

Base Metals

The base metals pack traded on a negative note on the back of concerns over the results of Italy's election which recreated the Euro Zone debt crisis.

Further, stre ngth in the DX also exerted downside pressure on the prices. Additionally, mixed 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 I eader of the base metal pack rose by 0.2 percent in yesterday's trading session. However, sharp upside in the prices was capped as a result of rise in the LME Copper inventories by 1.5 percent which stood at 430,725 tonnes.

Further, weak global market sentiments coupled with strength in the DX also exerted downside pressure on the prices. The red metal touched an intra-day high of $7,902.50/tonne and closed at $7,830.0/tonne in the yesterday's trading session.

On the domestic front, prices fell by 0.3 percent as a result of appreciation in the Indian Rupee and closed at Rs.422.50/kg after touching an intra-day low of Rs.420.80/kg on Monday.

Outlook

In the intra-day, we expect base metals prices to trade lower on the back of concerns over the Italy's election results coupled with weak global market sentiments. Additionally, strength in the DX will also add downside pressure on the prices. Depreciation in the Indian Rupee will prevent sharp downside in the prices on the MCX.