Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (January 11, 2013)

Contributed by Angel Broking

Base metal prices traded on a firm note yesterday with only Nickel closing lowe r. Positive global market sentiments were triggered after European Central Bank refrained from further interest rates cuts indicating that the economy is stabilising and might gradually recover in the later part of the year. Decline in the LME inventories in most of base metals also added to the gains in the base metals prices

In the dom estic markets, prices tracked the strength in the international base metal prices. Appreciation in the Indian rupee however rest ricted gains in the metal prices.

Copper

Copper prices rose 0.9 percent in yesterday's session. Copper prices increased du e to positive market sentiments along with weakness in the DX. Decline in the copper inventories on LME also added to the gains in the red metal prices. Weakness in the DX also pushed prices upwards.

LME Copper inventories declined 0.8 percent in yesterday's session and stood at 3,26,575 tonnes on Wednesday as against 3,29,050 tonnes on 09th January 2013.

Prices of Copper on LME touched an intra-day high of $ 8,165 per tonne and closed at $ 8,150 /tonne on Thursday. In the domestic markets MCX copper rose 0.8 percent tracing firmness in the international prices. However, sharp rise in the prices were capped owing to appreciation in the Indian rupee. In the domestic markets, prices of Copper on MCX touched an intra-day high of Rs. 447.1 per kg and closed at Rs. 448.8 per kg on Thursday.

Outlook

In the intra-day, base metal prices are expected to trade higher due to stimulus measures announced by the Bank of Japan to boost their economy. However, strength in the DX is expected to cap gains in the base metals prices. Favorable industrial output data from the major consuming nations are also expected to support an upside. In the domestic market, base metal prices on MCX are expected to trade higher due to depreciation in the rupee.