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Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (July 03, 2014)

July 3, 2014, Thursday, 04:40 GMT | 23:40 EST | 09:10 IST | 11:40 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a positive note yesterday owing to gain in nonfarm payrolls data from the US. Further, positive housing and construction data from UK supported gains.

However, mixed economic data from euro Zone capped sharp gains in prices.

In the Indian markets, base metals higher but Rupee appreciation restricted sharp upside movement.


Copper

LME Copper jumped by 1.8 percent and hit a four-month high of $7144.5/tonne taking cues from jump in U.S. jobs data that signaled a strengthening recovery in the world's largest economy, boosting demand prospects for the metal. In addition, increased fund buying owing to brightening demand outlook supported gains.

Further, sharp losses were restricted owing to weak manufacturing data from Euro Zone and 1.3 percent gain in inventories to 156,775 tonnes could not cap gains.

MCX Copper prices jumped by 1.2 percent yesterday and closed at Rs.432.8/kg but Rupee appreciation prevented sharp gains.


Outlook

We expect LME copper prices to trade higher owing to estimates of decent nonfarm payrolls data after jump in ADP nonfarm employment change last night followed by positive trade balance data from the US in the evening session.

Further, estimates of unemployment rate being unchanged at 6.3 percent will be supportive and in case, rates fall below expected, then this will likely give a boost to Copper prices.

In the Indian markets, sharp gains will be capped owing to Rupee appreciation.