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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (June 06, 2014)

June 6, 2014, Friday, 06:24 GMT | 01:24 EST | 09:54 IST | 12:24 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Nickel traded on a mixed note yesterday taking cues from expected rate cut by the ECB.

While on the other hand, favorable economic data from the Euro Zone acted as a positive factor. Upbeat market sentiments, weakness in the DX along with decline in inventories supported gains.

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


Copper

LME Copper prices traded on a flat note as a probe into financing transactions at China’s Qingdao Port will curb demand in deals using the metal as collateral. Also, rate cut by the ECB in its monetary policy meeting yesterday exerted downside pressure on prices.

However, losses were wiped off owing to positive economic data from the Euro Zone. In addition, rise in risk appetite in the market sentiments and weakness in the DX acted as positive factors. The red metal touched an intra-day low of $6754/tonne and closed at $6783/tonne on Thursday.

MCX Copper prices declined by 0.5 percent owing to Rupee appreciation and touched an intra-day low of Rs.403.25/kg before closing at Rs.404.6/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 unfavorable employment data from the US in the evening session that will exert downside pressure on prices.

While on the other hand, expectations of positive economic data from Euro zone, upbeat market sentiments along with weakness in the DX will cushion sharp downside or even reversal in prices.

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

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