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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (June 24, 2014)

June 24, 2014, Tuesday, 06:34 GMT | 01:34 EST | 10:04 IST | 12:34 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Nickel traded on a positive note yesterday on the back of favorable manufacturing data from the biggest consumers, the US and China. Further, decline in LME inventories acted as a positive factor.

However, mixed global market sentiments along with weak economic data from Euro Zone exerted downside pressure on prices.

In the Indian markets, base metals traded higher in line with international markets.


Copper

LME Copper prices jumped by 0.8 percent yesterday as signs of optimism brightened after favorable manufacturing data from the US and China. Also, weakness in the DX coupled with 0.5 percent decline in inventories to 158,575 tonnes supported gains.

However, unfavorable manufacturing and services PMI data from Euro Zone along with rising uncertainty in Iraq kept the gains under check. The red metal touched an intra-day high of $6900/tonne and closed at $6873.5/tonne on Monday.

MCX Copper prices gained 0.6 percent and touched a weekly high of Rs.420.3/kg before closing at Rs.418.2/kg in the last trading session.


Outlook

We expect LME Copper prices to trade on a positive note today on the back of expectations of positive economic data from the US. Also, increasing optimism from the biggest consumers, the US and China will brighten demand prospects for the red metal.

However, ongoing probe into Qingdao port along with estimates of weak business climate data from Germany will cap sharp gains. In addition, mixed market sentiments and strength in the DX will act as negative factors.

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

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