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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (June 27, 2014)

June 27, 2014, Friday, 06:40 GMT | 01:40 EST | 10:10 IST | 13:40 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Aluminium traded on a positive note yesterday on the back of positive employment data from the US. Further, decline in LME inventories acted as a positive factor.

However, sharp gains were capped owing to indication by a Federal Reserve official that the U.S. interest rates could rise by March. Also, weak global market sentiments exerted downside pressure on prices.

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


Copper

LME Copper prices gained 0.4 percent yesterday taking cues from 0.5 percent decline in inventories along with rise in risk appetite in the market sentiments.

However, concern that demand to use the red metal as collateral for loans may decline in China restricted gains. Further, Federal Reserve official signaled U.S. interest rates could rise by March acted as a negative factor. The red metal touched an intra-day high of $6955.15/tonne and closed at $6947/tonne on Thursday.

MCX Copper prices gained 0.4 percent and touched an intra-day high of Rs.422.15/kg before closing at Rs.420.4/kg in the last trading session.


Outlook

We expect LME Copper prices to trade higher today on the back of estimates of favorable economic data from the US and Euro Zone. Also, weakness in the DX supported gains.

However, weak global market sentiments will cap sharp gains in prices.

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