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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (June 26, 2014)

June 26, 2014, Thursday, 04:46 GMT | 23:46 EST | 08:16 IST | 10:46 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Lead traded on a positive note yesterday on the back of positive economic data from Euro Zone. Further, decline in LME inventories along with weakness in the DX acted as a positive factor.

However, sharp gains were capped owing to weak economic data from the US.

In the Indian markets, base metals traded higher but Rupee appreciation restricted sharp upside in prices.


Copper

LME Copper prices gained 0.7 percent yesterday as inventories fell for the 10th trading day in a row, and are at the lowest since October 2008. Also, weakness in the DX along with upbeat market sentiments in the latter part of trade supported gains.

However, U.S. which is the second biggest consumer saw its GDP declining at a 2.9 percent annualized rate in the first quarter, the worst reading since the same three months in 2009. The red metal touched an intra-day high of $6928/tonne and closed at $6922/tonne on Wednesday.

MCX Copper prices gained 0.4 percent and touched an intra-day high of Rs.420.8/kg before closing at Rs.420.2/kg in the last trading session.


Outlook

We expect LME Copper prices to trade higher today on the back of weakness in the DX along with upbeat global market sentiments.

However, weak GDP data from the US will exert downside pressure on prices.

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

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