Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (January 18, 2013)

Contributed by Angel Broking

Base metal prices traded on a positive note taking cues from favourable data from the US and on the expectations of better Chinese GDP data to be released today. Weakness in the DX also supported prices to move upwards in yesterday's session. Decline in the LME inventories of most of base metals also provided strength to the base metals prices.

In the domestic markets, appreciation in the Indian rupee restricted sharp gains in the base metals prices.

Copper

Copper prices gained 1.4 percent on account of positive housing data from the US and hopes of better GDP data from China which would be released today. Weakness in the DX also supported prices to move upwards. Decline in the LME inventories of copper added to the gains in the red metal prices.

LME Copper inventories declined 0.96 percent in yesterday's session and stood at 3, 45,925 tonnes on Thursday as against 3, 49,275 tonnes on 18th January 2013.

Prices of Copper on LME touched an intra-day high of $ 8,065 per tonne and closed at $ 8,058/tonne on Thursday. In the domestic markets, MCX copper gained 0.2 percent tracing firmness in the int ernational prices along with weakness in the DX. Appreciation in the Indian rupee however capped gains in the metal prices. In the domestic markets prices of Copper on MCX touched an intra-day high of Rs. 440.8 per kg and closed at Rs. 439.65 per kg on Thursday.

Outlook

In today's session, we except base metal prices to trade with positive bias owing to better than expected economic growth and favorable industrial data from the China, indicating the economic recovery of the largest consumer of industrial metals. This would translate into increased demand for the metals from the nation. However, strength in the DX is expected to cap gains in the base metal prices. In the domestic markets, appreciation in the Indian rupee is expected to restrict gains of MCX base metal prices.