New York: 11:11 || London: 16:11 || Mumbai: 19:41 || Singapore: 22:11

Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (July 16, 2014)

July 16, 2014, Wednesday, 07:32 GMT | 02:32 EST | 11:02 IST | 13:32 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note yesterday unfavorable economic data from Euro Zone as the German Zew sentiment declined to 48.1 indicating weakness in the region.

On the other hand, the comments from the Fed policy makers that the bond buying programme will be winded up as soon as October 2014 is a progressive signal that economic optimism in the US economy is growing which in turn will create demand for the base metals.

In the Indian markets, all the base metals traded largely on a positive note.


Copper

LME Copper prices traded gained by 0.1 percent yesterday as the FED policy makers are sure to wind up its bond buying programme by its October meeting which in turn will create demand for copper supporting prices.

In addition, data from China also indicated optimism as China’s Gross Domestic Product (GDP) increased by 7.5 percent in Q2 of 2014 from 7.4 percent in Q1 of 2014. Industrial Production grew by 9.2 percent in June as against a rise of 8.8 percent in May.

MCX Copper prices gained by 0.2 percent before closing at Rs.435/kg on Tuesday.


Outlook

We except LME Copper prices to trade higher as the optimism in the US as well as Chinese economy is indicating that the worlds two largest consumers of base metals are on the path of growth trajectory. On the contrary, the slowdown in Eurozone to some extent will cap sharp upside in prices

MCX Copper prices will trade higher today taking cues from strong international markets.