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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (June 03, 2014)

June 3, 2014, Tuesday, 10:54 GMT | 05:54 EST | 14:24 IST | 16:54 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Aluminium traded on a positive note yesterday taking cues from positive manufacturing data from the US. Also, decline in inventories acted as a positive factor.

However, strength in the DX coupled with mixed economic data from Euro Zone and UK cushioned sharp downside.

In the Indian markets, base metals traded higher owing to Rupee depreciation.


Copper

LME Copper prices jumped by 1.2 percent yesterday taking cues from favorable manufacturing data from two biggest consumers, the US and China, boosted demand outlook for the metal. Also, decline in inventories by 0.3 percent supported gains.

However, strength in the DX coupled with mixed global market sentiments acted as negative factors. The red metal touched an intra-day high of $/tonne and closed at $6926.8/tonne on Friday.

MCX Copper prices surged by 1.3 percent and touched an intra-day high of Rs.416.85/kg before closing at Rs.416/kg in the last trading session.


Outlook

We expect LME Copper prices to trade on a positive note today on the back of positive manufacturing data from China, which despite growing at less than expected pace, showed that new export orders rose at the quickest pace in over four years. Also, weakness in the DX coupled with upbeat market sentiments will act as a positive factor.

However, mixed economic data from Euro Zone and UK will cap sharp gains in prices. Also, slow growth in the US factory orders will exert downside pressure on prices.

In the Indian markets, Rupee movement will provide further direction to prices.