Industrial metals (copper, aluminium, nickel, etc.) daily review (January 07, 2014)
January 7, 2014, Tuesday, 07:42 GMT | 02:42 EST | 12:12 IST | 14:42 SGT
Base metals on the LME traded on a positive note on Monday, with Nickel being an exception. Positive factory orders data from the US acted as a supportive factor to prices. Further, favorable economic data from the Euro Zone also acted as a positive factor. Also, decline in inventories of base metals coupled with weakness in the DX supported gains in prices. However, mixed global market sentiments restricted sharp positive movement.
In the Indian markets, base metals traded higher on the back of Rupee depreciation.
LME Copper traded higher by 0.2 percent yesterday, taking cues from favorable factory orders data from the US. Also, decline in LME inventories for the 43rd straight session, the lowest since 2004, supported gains in prices.
Further, weakness in the DX coupled with positive economic data from the Euro Zone added an upside to the prices. LME Copper touched an intra-day high of $7348.5/tonne and closed at $7331/tonne on Monday.
MCX Copper prices gained 0.3 percent yesterday, touching an intra-day high of Rs.467.6/kg and closing at Rs.467.05/kg on Monday.
Falling inventories in case of copper are expected to be supportive for the red metal. But with no major cues on the data front, trend in case of the other metals is expected to be rangebound.