Industrial metals (copper, aluminium, nickel, etc.) daily review (January 16, 2014)
January 16, 2014, Thursday, 06:07 GMT | 02:07 EST | 11:37 IST | 14:07 SGT
Base metals on the LME traded higher yesterday taking cues from positive global growth forecast for 2014 by the World Bank that fuelled hopes of optimistic demand outlook for the base metals.
Also, positive manufacturing data from the US coupled with upbeat global market sentiments acted as a supportive factor for the base metals. Additionally, decline in inventories added an upside in the prices. Further, strength in the DX could not pull the prices lower.
In the Indian markets, base metals traded on a positive note on Wednesday owing to Rupee depreciation.
LME Copper tr aded on a positive note by 0.8 percent on the back of expectations of rise in demand taking cues from positive growth outlook by the World Bank for the year 2014. Also, positive economic data from the US along with decline in inventories by 0.5 percent to 336,250 tonne s acted as supportive factors.
Further, strength in the DX could not exert downside pressure on prices. The metal touched an intra-day high of $7360/tonne and closed at $7352/tonne on Wednesday.
MCX Copper prices rose by 0.9 percent on Rupee appreciation touching an intra-day high of Rs.460.25/kg and closed at Rs.459.9/kg on Wednesday.
We expect base metals to trade higher today on the back of expectations of positive Philly Fed Manufacturing Index data from the US. Further, upbeat market sentiments after World Bank raising the global growth outlook will continue to act as a positive factor. Additionally, favorable economic data from Japan in early part of the trade will support an upside in the prices. However, strength in the DX will restrict sharp gains in prices. In the Indian markets, sharp upside in the prices will be capped due to Rupee appreciation.