New York: 03:10 || London: 08:10 || Mumbai: 11:40 || Singapore: 14:10

Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (January 01, 2014)

January 1, 2014, Wednesday, 05:18 GMT | 00:18 EST | 09:48 IST | 12:18 SGT
Contributed by Angel Broking


Base metals on the LME traded on a mixed note yesterday taking cues from mixed trend in inventories coupled with mixed economic data from the US. Further, strength in the DX acted as a negative factor.

However, upbeat market sentiments along with favorable consumer confidence data from the US cushioned sharp fall in the prices of the base metals.

In the Indian markets, base metals Rupee appreciation exerted downside pressure on the prices.


Copper

LME Copper prices traded on a flat note and gained marginally yesterday due to rise in the US consumer confidence data. Further, decline in LME copper inventories by 0.3 percent to 366,425 tonnes coupled with upbeat market sentiments supported an upside in the prices. However, sharp rise in the prices was restricted on the back of strength in the DX. The red metal touched an intra-day high of $7395/tonne and closed at $7374.50/tonne in yesterday’s trading session.

MCX Copper prices rose by 0.4 percent yesterday touching an intra-day high of Rs.469.95/kg and closed at Rs.468.60/kg on Tuesday.


Outlook

We expect base metal prices to trade on mixed note today on the back of positive Consumer Confidence data from the US in the yesterday’s trade will support an upside in the prices. Also, declining trend in inventories will support gains. While on the other hand, decline in China’s manufacturing data will exert downside pressure on the prices. Further, less volatility will be observed as majority markets are closed today on the eve of New Year’s holiday. In the Indian markets, base metals will trade lower or gains will be capped due to Rupee appreciation.