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Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (June 25, 2014)

June 25, 2014, Wednesday, 12:45 GMT | 07:45 EST | 17:15 IST | 19:45 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note yesterday on the back of mixed global market sentiments. Further, weak business climate data from Germany acted as a negative factor.

However, positive momentum gained owing to favorable economic data from the US. Also, decline in LME inventories coupled with weakness in the DX supported gains.

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


Copper

LME Copper prices gained marginally yesterday taking cues from positive economic data from the US. Also, weakness in the DX along with 0.5 percent in inventories supported gains.

Gains were capped as China’s imports of refined copper fell 17 percent to 282,969 tons in May. Also, speculation of further drop as the Qingdao investigation may curb purchases from abroad by traders who use commodities as collateral to get loans gained traction. The red metal touched an intra-day high of $6895/tonne and closed at $6877/tonne on Tuesday.

MCX Copper prices gained 0.1 percent and touched an intra-day high of Rs.419.5/kg before closing at Rs.418.6/kg in the last trading session.


Outlook

We expect LME Copper prices to trade sideways today on the back of favorable consumer climate data from Germany that will support gains in prices.

However, weak imports data from China along with estimates of weak GDP data from the US will act as a negative factor. In addition, weak market sentiments and strength in the DX will exert downside pressure on prices.

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