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Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (July 24, 2014)

July 24, 2014, Thursday, 06:56 GMT | 01:56 EST | 11:26 IST | 13:56 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded lower yesterday on the back of speculation theta the rally in the prices of Zinc, Lead and Aluminium was excessive in absence of enough fundamental demand. Also, investors were conscious ahead of manufacturing data from the US, Euro Zone and China due today.

However, declining trend in LME inventories along with recovery in markets sentiments restricted sharp downside.

In the Indian markets, all the base metals traded on a negative note taking cues from international trends.


Copper

LME Copper prices declined marginally yesterday in anticipation manufacturing data from the biggest consumers. However, 0.6 percent decline in inventories prevented prices from falling sharply.

Also, lack of economic data in yesterday’s session curbed sharp movement in prices of the metal. The red metal closed at $7050.3/tonne in the last session.

MCX Copper prices fell by 0.4 percent owing to Rupee appreciation and closed at Rs.427.2/kg on Wednesday.


Outlook

We except LME Copper prices to trade sideways today on the back of favorable manufacturing data from the biggest consumer, China. Also, estimates of positive manufacturing data from the US and Euro Zone will act as a positive factor for prices.

While on the other hand, negotiations between Newmont, Freeport and the Indonesian government to restart exports from the world’s largest copper mines will tend to increase supply amid weakening demand and therefore will act as a negative factor.

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