Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (January 01, 2013)

Contributed by Angel Broking

All the base metals pack traded on positive note except for nickel which closed in red. The prices witnessed an upside on the back of hopes of resolution of the US fiscal cliff issue. The positive data from the manufacturing data from China also lent support to the base metal prices.

MCX base metals prices, tracking the international prices also increased. Depreciation of rupee also a supported the upside in the base metal prices on MCX.

Copper

Copper prices increased 0.6 percent yesterday. The increase in the prices was due to the positive manufacturing data from the China. The optimism that the US law makers would reach a deal on the fiscal cliff also supported an upside in the copper prices.

However, rise in the LME inventories excreted downside pressure on the prices. Strength in the DX also exerted downside pressure on the copper prices yesterday.

Copper inventories on LME increased by 0.63 percent in yesterday's session and stood at 320,050 tonnes on Monday as against 318,050 tonnes as on 28th December 2012.

Prices of Copper on LME touched a high of $ 7,898.5 per tonne and closed at $ 7,944.25/tonne on Monday. In the domestic markets, MCX copper gained 1 percent tracking the international markets. In the domestic markets, prices of Copper on MCX touched a weekly high of Rs. 444.20 per kg and closed at Rs. 443.75 per kg on Monday.

Outlook

From the intraday perspective, the base metals are expected to gain due to optimism that the US fiscal cliff issue might be resolved. The prices are also expected to gain strength on the back of favorable manufacturing data from China. However, strength in the DX might restrict gains. In the domestic markets, appreciation in the Indian rupee will exert downside pressure in the metal prices on MCX.