New York: 18:53 || London: 23:53 || Mumbai: 03:23 || Singapore: 05:53

Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (June 17, 2014)

June 17, 2014, Tuesday, 06:28 GMT | 01:28 EST | 09:58 IST | 12:28 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a positive note yesterday taking cues from favorable manufacturing and industrial data from the US. Also, weakness in the DX along with decline in inventories supported gains.

However, rise in risk aversion in the markets on the back of escalating tensions in Iraq restricted sharp upside in prices.

In the Indian markets, base metals traded higher owing to Rupee depreciation.


Copper

LME Copper prices gained 0.6 percent yesterday on the back of positive industrial and manufacturing data from the US that supported demand for the red metal. Also, decline of 0.9 percent in inventories to 162,250 tonnes coupled with weakness in the DX added an upside to prices.

However, mounting geopolitical tensions in Iraq for the second day in a row dented market sentiments. The red metal touched an intra-day low of $6722/tonne and closed at $6685/tonne on Monday.

MCX Copper prices jumped by 1.3 percent taking cues from Rupee depreciation and touched an intra-day high of Rs.407.2/kg before closing at Rs.405.9/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.

While on the other hand, estimates of positive economic sentiments data from Euro Zone will cushion sharp downside in prices.

In the Indian markets, Rupee depreciation will support gains in prices.