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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (July 02, 2014)

July 2, 2014, Wednesday, 09:21 GMT | 04:21 EST | 13:51 IST | 16:21 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Nickel traded on a negative note yesterday owing to decline in manufacturing data from the US. Further, mixed trend in LME inventories along with mixed economic data from Euro Zone acted as negative factors.

However, favorable manufacturing numbers from China and UK cushioned sharp downside in prices.

In the Indian markets, base metals except Zinc traded higher despite Rupee appreciation.


Copper

LME Copper traded marginally lower taking cues from weak manufacturing data from the US. Also, mixed economic data from Euro Zone along with trend reversal in inventories exerted downside pressure on prices.

However, sharp losses were restricted owing to favorable manufacturing number from the biggest consumer, China. Also, China is relaxing the rules used for calculating the amount of deposits that banks can re-lend as loans in an attempt to stimulate growth in its cooling economy. Further, strong manufacturing data from UK and fall in unemployment rate in the Euro Zone supported gains.

MCX Copper prices jumped by 1.3 percent yesterday and closed at Rs.427.7/kg despite Rupee appreciation and fall in international prices.


Outlook

We expect LME copper prices to trade sideways owing to estimates of mixed economic data from the US in the evening session. Also, weak housing and construction data from UK will act as a negative factor.

Further, weakness in the DX along with upbeat market sentiments will support gains.

Indian markets will take cues from international markets.

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