Industrial metals (copper, aluminium, nickel, etc.) daily review (January 08, 2014)
January 8, 2014, Wednesday, 07:24 GMT | 02:24 EST | 12:54 IST | 15:24 SGT
Base metals on the LME traded on a mixed note yesterday taking cues from positive economic data from the Euro Zone. Also, upbeat market sentiments coupled with decline in inventories acted as supportive factor. Further, strength in the DX restricted sharp positive movement.
In the Indian markets, base metals trade lower owing to Rupee appreciation.
LME Copper gained 0.3 percent on Tuesday on the back of favorable economic data from the Euro Zone. Also, decline in LME copper inventories for the 44th consecutive session by 0.9 percent to 353,075 tonnes along with upbeat global market sentiments supported gains in the metal. However, strength in the DX capped sharp gains. The red metal touched an intra-day high of $7352.5/tonne and closed at $7350/tonne on Tuesday.
MCX Copper fell by 0.4 percent yesterday on Rupee appreciation touching an intra-day low of Rs.464.2/kg and closed at Rs.465.35/kg on Tuesday.
We expect base metal prices to trade mixed today on the back of estimates of unfavorable data from the US in the evening session. Also, strength in the DX will act as a negative factor. While on the other hand, expectations of positive economic data from the Euro Zone will support an upside. Further, favorable inventory scenario in case of Copper will act as a positive factor.
In the Indian markets, base metals will trade lower or gains will be capped on account of Rupee appreciation.