Industrial metals (copper, aluminium, nickel, etc.) daily review (January 10, 2014)
January 10, 2014, Friday, 12:38 GMT | 07:38 EST | 18:08 IST | 20:38 SGT
Base metals on the LME traded on a negative note yesterday taking cues from unfavorable inflation data from China. Also, more than expected fall in unemployment claims strengthened the case for further QE tapering, thereby curbing demand for the base metals.
Also, mixed global market sentiments acted as negative factor. Further, positive economic data from Germany coupled with decline in LME inventories could not provide respite to falling prices.
LME Copper prices fell by 1.2 percent yesterday on the back of negative inflation data from the biggest consumer, China. Decline in LME inventories by 1 percent to 348,250 tonnes along with favorable industrial production from Germany could not cushion downside in prices. The red metal touched an intra-day low of $7209/tonne and closed at $7227.75/tonne on Thursday.
MCX Copper slumped by 1.6 percent yesterday, touching an intra-day low of Rs.454.5/kg and closed at Rs.455.65/kg on Thursday.
We expect base metals to trade on a negative note today on the back of concerns of slowing economic growth in China. Also, QE taper concerns will continue to remain an influential factor for base metal prices.