Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 28, 2013)

Contributed by Angel Broking

The base metals pack traded on a mixed note in the international market. Positive economic data like core durable goods orders and new pending home sales from US coupled with weakness in DX cushioned the downside.

Further, the comments from ECB President Mario Draghi that central bank s have no intentions of tightening monetary policy to support growth prevented the downside pressure. However, sharp upside in the prices was capped on the back of rise in LME inventories.

In the Indian markets, base metals pack traded on negative note on account of appreciation in Indian Rupee.

Copper

Copper the leader of the base metal pack declined by 0.4 percent in yesterday's trading session on the back of increase in LME inventories by 1.4 percent which stood at 444,350 tonnes. Favourable economic data from US coupled with comments from ECB president Mario Draghi cushioned the downfall in prices.

Fu rther, weakness in the DX also prevented sharp fall in the prices. The red metal touched an intra-day low of $7,846.75/tonne and closed at $7,863.75/tonne in the yesterday's trading session.

On the domestic front, prices declined by 1.2 percent as a result of appreciation in the Indian Rupee and closed at Rs.421.4/kg after touching an intra-day low of Rs.421/kg on Wednesday.

Outlook

In the intra-day, we expect base metals prices to trade higher on the back of positive economic data from the US coupled with weakness in the DX. Further, expectations of increase in the US GDP data along with fall in the jobless claims data will also act as a positive factor for the prices. Appreciation in the Indian Rupee will cap sharp gains in the prices on the MCX.