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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (June 16, 2014)

June 16, 2014, Monday, 05:22 GMT | 00:22 EST | 08:52 IST | 11:22 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a negative note last week taking cues from unfavorable economic data from the US that led to concerns of demand outlook in the second biggest consumer. Also, mixed global market sentiments coupled with strength in the DX acted as negative factors.

However, favorable industrial production data from China and Euro Zone restricted sharp downside in prices. Also, declining trend in LME inventories supported gains.

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


Copper

LME Copper prices plunged by 1 percent in the last week on the back of Chinese probe into financing transactions that threatened demand for deals using the red metal as collateral. Also, string of negative economic data from the US exerted downside pressure on prices. Also, rise in risk aversion in the market sentiments coupled with strength in the DX acted as negative factors.

However, positive economic data from China eased concern that demand will slide in the biggest consumer provide some respite to the metal. Further, favorable industrial production data from Euro Zone coupled with 2.4 percent decline in inventories cushioned sharp downside in prices. The red metal touched a weekly low of $6614.75/tonne and closed at $6642/tonne on Friday.

MCX Copper prices gained 0.5 percent last week taking cues from Rupee depreciation and touched a weekly low of Rs.394.6/kg before closing at Rs.400.85/kg in the last trading session.


Outlook

We expect LME Copper prices to trade sideways today owing to mixed economic data from the US in the evening session. Further, weak market sentiments along with strength in the DX will exert downside pressure on prices.

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

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