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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (June 13, 2014)

June 13, 2014, Friday, 06:33 GMT | 01:33 EST | 10:03 IST | 12:33 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a negative note yesterday taking cues from unfavorable economic data from the US. Also, mixed global market sentiments coupled with mixed trend in LME inventories acted as negative factors.

Further, positive industrial production data from the Euro Zone could not provide respite to the metals complex.

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


Copper

LME Copper prices fell by 0.8 percent yesterday on the back of fall in retail sales data from the US. Further, Chinese probe into financing transactions continue to exert downside pressure on prices. Also, rise in risk aversion in the market sentiments acted as negative factors.

However, rise in industrial production data from the Euro Zone along with 0.6 percent decline in inventories cushioned sharp downside in prices. The red metal touched an intra-day low of $6614.75/tonne and closed at $6625/tonne on Thursday.

MCX Copper prices plunged by 1 percent taking cues from Rupee appreciation and touched an intra-day low of Rs.394.6/kg before closing at Rs.395.8/kg in the last trading session.


Outlook

We expect LME Copper prices to trade lower today as mixed economic data from the US will exert downside pressure on prices. Also, the probe into China’s warehousing deals continues and will thereby hurt the demand for the red metal. Further, weak market sentiments along with strength in the DX will exert downside pressure on prices.

However, favorable Industrial Production data from China will cushion sharp downside in prices.

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