Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (January 10, 2013)

Contributed by Angel Broking

Base metal prices traded on a mixed note yesterday with Aluminium and Nickel closing on a positive note. Alcoa Inc., the largest producer of Aluminium of the US, registered gains in the net incomes and sees the demand from the largest aluminium user, China to rise in future on the back of rebound in the Chinese economy coupled with rise in demand for cans, cars and office buildings.

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 0.1 percent in yesterday's session. Copper prices declined due to rise in the copper inventories on LME. Strength in the DX also exerted downside pressure on the copper prices.

LME Copper inventories increased 0.5 percent in yesterday's session and stood at 329,050 tonnes on Wednesday as against 327,375 tonnes on 08th January 2013.

Prices of Copper on LME touched an intra-day low of $ 8,055 per tonne and closed at $ 8,066.75 /tonne on Wednesday. In the domestic markets MCX copper declined 0.33 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. 447.1 per kg and closed at Rs. 447.4 per kg on Wednesday.

Outlook

In the intra-day, base metal prices are expected to trade upwards due to positive global market sentiments. However, strength in the DX is expected to cap gains in the base metals prices. The Chinese imports displayed an increase which signals that the domestic demand of the nation has picked up which might support an upside in the metal prices as the country is largest consumer of industrial metals. In the domestic market, base metal prices on MCX are expected to trade lower due to appreciation in the rupee.