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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (July 28, 2014)

July 28, 2014, Monday, 05:12 GMT | 00:12 EST | 08:42 IST | 11:12 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded higher last week on the back of positive manufacturing data from China and positive housing data from the US. Also, declining trend in LME inventories along with recovery in markets sentiments helped by the first signs of cooperation from Ukraine's pro-Russian separatists over the downed Malaysian Airlines plane acted as positive factor.

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


Copper

LME Copper prices jumped by 1.9 percent last week as manufacturing data in China, the world’s top consumer of industrial metals surged to an 18-month high in July. Also, favorable employment and housing data from the US that points towards improving economy acted as a positive factor.

Further, decline in LME inventories to 6-year low levels coupled with rebound in market sentiments in the latter part of trade supported gains. The red metal touched a weekly high of $7198.25/tonne before closing at $7129/tonne in the last session.

MCX Copper prices surged by around 1.4 percent last week in line with international markets and closed at Rs.432/kg on Friday.


Outlook

We except LME Copper prices to trade sideways today as optimism regarding the US and Chinese economy will continue to support gains in the metal.

While on the other hand, major miner Freeport which is set to resume concentrate exports from Indonesia after a six-month halt along with estimates of negative pending home sales data from the US will exert downside pressure on prices.

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