New York: 12:56 || London: 17:56 || Mumbai: 21:26 || Singapore: 23:56

Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (June 09, 2014)

June 9, 2014, Monday, 12:05 GMT | 07:05 EST | 15:35 IST | 18:05 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note in the last week taking cues from mixed global market sentiments over the week. Also, mixed economic data from Euro Zone and UK acted as negative factors.

While on the other hand, favorable manufacturing data from the US and China supported gains. Also, decline in LME inventories acted as a positive factor.

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


Copper

LME Copper prices plunged by 2 percent last week owing to probe into financing transactions at China’s Qingdao Port that has led to concerns of falling demand in deals using the metal as collateral. Also, rate cut by the ECB in its monetary policy meeting exerted downside pressure on prices. Further, mixed economic data from the US and Euro Zone pushed the prices lower.

However, positive manufacturing data from the biggest consumers, the US and China along with 2 percent decline in inventories cushioned sharp downside in prices. The red metal touched a weekly low of $6640/tonne and closed at $6709/tonne on Friday.

MCX Copper prices declined by around 3 percent owing to Rupee appreciation and touched an intra-day low of Rs.396.3/kg before closing at Rs.398.8/kg in the last trading session.


Outlook

We expect LME Copper prices to trade on a mixed note today on the back of favorable trade balance data from China and Japan. Also, weakness in the DX along with upbeat market sentiments will support gains.

While on the other hand, concerns of demand outlook from the US and China will cap sharp gains or even reversal in prices.

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