Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (January 09, 2013)

Contributed by Angel Broking

Base metal prices declined yesterday taking cues from weak factory orders from Germany. Strength in the DX also exerted downside pressure in the metal prices.

In the domestic markets, the prices tracked the bearishness in the international prices. Appreciation in the Indian rupee also supported the fall in the metal prices.

Copper

Copper prices fell 0.2 percent in yesterday's session. Copper prices declined due to unfavourable economic data from the Euro region along with rise in the LME inventories. Strength in the DX in the later part of the day also exerted downside pressure on the copper prices.

LME Copper inventories increased by 2.49 percent in yesterday's session and stood at 3,27,325 tonnes on Tuesday as against 3,19,400 tonnes on 07th January 2013.

Prices of Copper on LME touched an intra-day low of $ 8040 per tonne and closed at $ 8074.75 /tonne on Tuesday. In the domestic markets MCX copper declined 0.5 percent tracing weakness in the international prices and appreciation in the Indian rupee. In the domestic markets prices of Copper on MCX touched an intra-day low of Rs. 448.3 per kg and closed at Rs. 448.9 per kg on Tuesday.

Outlook

In the intra-day, base metal prices are expected to trade with bearish note due to mixed global market sentiments along with strength in the DX. There is expectation that Chinese economy grew at a faster pace in the fourth quarter of 2012. This is expected to increase the demand for the base metals thereby restricting decline in the prices. In the domestic market, base metal prices on MCX are expected to trade with bearish note due to appreciation in the rupee.