Industrial metals (copper, aluminium, nickel, etc.) daily review (January 15, 2014)
January 15, 2014, Wednesday, 06:13 GMT | 02:13 EST | 11:43 IST | 14:13 SGT
Base metals on the LME traded on a mixed note yesterday taking cues from positive economic data from the US and Euro Zone.
Also, upbeat global market sentiments coupled with decline in inventories acted as supportive factors. However, strength in the DX exerted downside pressure on prices.
In the Indian markets, base metals traded on a mixed note on Tuesday.
LME Copper traded on a negative note by 0.4 percent taking cues from strength in the DX. However, positive industrial production data from Euro Zone along with favorable retail sales data from the US cushioned sharp downside in prices of the red metal.
Further, decline in LME inventories by 0.9 percent to 337,775 tonnes restricted sharp negative movement. The metal touched an intra-day low of $7275/tonne and closed at $7297.3/tonne on Tuesday.
MCX Copper prices fell by 0.4 percent on Rupee appreciation touching an intra-day low of Rs.454/kg and closed at Rs.455.55/kg on Tuesday.
We expect base metals to trade mixed today on the back of expectations of positive economic data from the US and Euro Zone will support an upside in the prices. Further, upbeat market sentiments after World Bank raising the global growth outlook will act as a positive factor. However, strength in the DX will act as a negative factor for prices.
In the Indian markets, base metals will trade lower owing to Rupee appreciation.