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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (July 15, 2014)

July 15, 2014, Tuesday, 06:34 GMT | 01:34 EST | 10:04 IST | 12:34 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note yesterday owing to mixed trend in LME inventories. Also, unfavorable economic data from Euro Zone acted as a negative factor.

While on the other hand, optimism regarding Chinese growth data gave a boost to base metals prices. Also, rise in risk appetite in the market sentiments after Portugal Bank Company’s fear receded, supported gains.

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


Copper

LME Copper prices traded lower by 0.4 percent yesterday on the back of speculation that the rally in prices was excessive given recent gains in LME stocks. Also, negative industrial production data from Euro Zone coupled with gain of 0.6 percent in inventories exerted downside pressure on prices.

However, optimism ahead of China’s GDP data due on Wednesday along with upbeat global market sentiments restricted sharp fall in prices. The red metal touched an intra-day low of $7116/tonne before closing at $7128.3/tonne on Monday.

MCX Copper prices declined 0.6 percent and touched an intra-day low of Rs.433.5/kg before closing at Rs.434/kg in the last trading session.


Outlook

We except LME Copper prices to trade lower on account of profit booking, diverging its recent positive run. Also, estimates of mixed economic data from the US and Euro Zone coupled with strength in the DX will act as a negative factor.

However, hopes of stability in Chinese GDP due to be released tomorrow will cushion sharp downside in prices.

MCX Copper prices will trade lower taking cues from weak international markets.