Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 01, 2013)

Contributed by Angel Broking

The base metals pack traded on a negative note due to slow growth of US GDP data for Q4 of 2012 coupled with increase in LME inventories. Additionally, strength in DX along with worries over global economic growth also added downside pressure on the prices.

However, positive US Initial Jobless Claims data cushioned the sharp downside in the prices.

In the Indian markets, sharp decline in the base metal prices was prevented due to depreciation in rupee.

Copper

Copper, the leader of the base metal pack declined by 0.6 percent in yesterday's trading session on the back of weak US GDP data, strength in DX and increase in LME inventories by 0.5 percent which stood at 446,700 tonnes.

Positive US Initial Jobless Claims data prevented sharp declines. The red metal touched an intra-day low of $7,805/tonne and closed at $7,816/tonne in the yesterday's trading session.

On the domestic front, prices declined by 0.8 percent and closed at Rs.421.4/kg after touching an intra-day low of Rs.421/kg on Thursday. Sharp downfall in prices was capped due to depreciation in rupee.

Outlook

In the intra-day, we expect base metals prices to trade lower on the back of negative Manufacturing data from China with strength in the DX. Further, expectations of negative US ISM manufacturing data will pressure prices to trade on lower note. Depreciation in the Indian Rupee will prevent sharp decline in the prices on the MCX.