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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (July 04, 2014)

July 4, 2014, Friday, 10:19 GMT | 05:19 EST | 13:49 IST | 16:19 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note yesterday owing to favorable employment data from the US. Further, upbeat global market sentiments supported gains.

While on the other hand, mixed economic data from Euro Zone along with strength in the DX capped sharp gains in prices. Also, mixed trend in LME inventories acted as a negative factor.

In the Indian markets, base metals higher in line with international markets.


Copper

LME Copper gained 0.5 percent yesterday as the U.S. unemployment rate fell to the lowest in almost six years, signaling that US economic recovery will boost demand amid supply curbs. Also, rise in risk appetite in the market sentiments acted as a positive factor.

However, sharp gains were restricted owing to weak data from Euro Zone and gain in inventories for the second day in a row.

MCX Copper prices rose by 0.4 percent and closed at Rs.434.6/kg after touching a high of Rs.435.3/kg in the last trading session.


Outlook

We expect LME copper prices to trade higher owing to strong recovery in the US economy which boosted demand outlook for the red metal. Also, upbeat market sentiments will add an upside to prices. lesser volatility will be observed as US markets are shut on account of Independence Day holiday.

In the Indian markets, Copper prices will trade with a positive bias taking cues from international trends.

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