Industrial metals (copper, aluminium, nickel, etc.) daily review (January 06, 2014)
January 6, 2014, Monday, 06:39 GMT | 01:39 EST | 12:09 IST | 14:39 SGT
Base metals pack on the LME traded on a negative note last week on the back of decline in manufacturing data from the US and China. Also, mixed inventories coupled with weak market sentiments exerted downside pressure on prices.
Further, strength in the DX coupled with concerns of QE tapering by the Federal Reserve acted as a negative factor. However, sharp downside in the prices was prevented due to favorable economic data from the Euro Zone.
LME Copper prices declined around 1 percent in the last week, taking cues from unfavorable manufacturing data from the US and China. Also, weak market sentiments coupled with strength in the DX exerted downside pressure on the prices.
Favorable economic data from Euro Zone and decline in LME and Shanghai copper inventories could not provide respite to fall prices. The metal touched a weekly low of $7312/tonne and closed at $7313.75/tonne in the last trading session of the week.
MCX Copper traded on a negative note and fell around 0.6 percent in the last week, touching a weekly low of Rs.464.7/kg and closing at Rs.465.55/kg on Friday.
Expectations of positive economic data from the US are likely to support base metal prices today. Also, falling copper inventories will be a positive factor for the red metal and this in turn will help sentiments towards overall base metals pack being positive today.