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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (June 04, 2014)

June 4, 2014, Wednesday, 06:08 GMT | 01:08 EST | 09:38 IST | 12:08 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note yesterday taking cues from slow gain in factory orders data in the US that exerted downside pressure on prices. Also, mixed market sentiments acted as a negative factor.

While on the other hand, weakness in the DX coupled with decline in inventories supported gains.

In the Indian markets, base metals traded on a mixed note but Rupee depreciation restricted sharp fall in prices.


Copper

LME Copper prices fell by 0.9 percent yesterday taking cues from mixed economic data from the US and Euro Zone. Also, rise in risk aversion in the latter part exerted downside pressure on prices.

However, weakness in the DX coupled with more than 1 percent decline in inventories to 168825 tonnes cushioned sharp fall. The red metal touched an intra-day low of $6852/tonne and closed at $6864/tonne on Tuesday.

MCX Copper prices declined by 0.8 percent and touched an intra-day low of Rs.411.7/kg before closing at Rs.412.8/kg in the last trading session.


Outlook

We expect LME Copper prices to trade on a mixed note today on the back of estimates of weak trade and employment data from the US in the evening session that will exert downside pressure. Also, strength in the DX coupled with weak market sentiments will act as a negative factor.

However, expectations of improvement in the US and Chinese economy will cushion sharp fall in prices.

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