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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (June 05, 2014)

June 5, 2014, Thursday, 06:16 GMT | 01:16 EST | 09:46 IST | 12:16 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Nickel traded on a negative note yesterday taking cues from negative economic data from the US that once again fuelled concerns regarding economic recovery. Also, signs of slowing economic growth in the Euro Zone acted as a negative factor.

Further, decline in inventories coupled with mixed market sentiments could not restrict gains.

In the Indian markets, base metals traded lower owing to Rupee appreciation.


Copper

LME Copper prices declined by 1.2 percent yesterday taking cues from concerns of demand on account of uneven economic recovery in the US and Euro Zone. Also, strength in the DX along with rise in risk aversion in the market sentiments exerted downside pressure on prices.

Further, marginal 0.2 percent decline in inventories could not cushion sharp downside in prices. The red metal touched an intra-day low of $6760/tonne and closed at $6785/tonne on Wednesday.

MCX Copper prices plunged by 1.5 percent owing to Rupee appreciation and touched an intra-day low of Rs.405.65/kg before closing at Rs.406.5/kg in the last trading session.


Outlook

We expect LME Copper prices to trade on a mixed note today as the European Central Bank (ECB) is to decide on monetary policy in its meeting today.

Further, weak market sentiments coupled with strength in the DX will exert downside pressure on the red metal.

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