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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 04, 2014)

March 4, 2014, Tuesday, 09:09 GMT | 04:09 EST | 13:39 IST | 16:09 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note yesterday taking cues from decline in manufacturing data from China which increased concerns over the demand for the commodity. Further, strength in the DX coupled with weak market sentiments acted as a negative factor.

While on the other hand, favorable economic data from the US in the evening session along with mixed manufacturing data from Euro Zone supported an upside in the prices.

In the Indian markets, Rupee depreciation either supported an upside in the prices or sharp downside in prices was cushioned.


Copper

LME Copper prices plunged by around 0.6 percent yesterday taking cues from decline in manufacturing data from China which is the world’s largest consumer thereby increasing worries over the demand for the commodity. Further, weak market sentiments coupled with strength in the DX exerted downside pressure on the prices.

However, decline in LME copper inventories by 0.9 percent to 273,725 tonnes yesterday along with favorable economic data from the US failed to provide respite to fall in the prices. The red metal touched an intra-day low of $6944/tonne and closed at $6968/tonne in yesterday’s trade.

MCX Copper prices fell by 0.7 percent yesterday and touched an intra-day low of Rs.436.80/kg and closed at Rs.439.80/kg on Monday.


Outlook


We expect base metals prices to trade on a mixed note today on the back of weak market sentiments coupled with strength in the DX will exert downside pressure on the prices. Further, expectations of unfavorable economic data from Euro Zone and the UK will act as a negative factor. While on the other hand, favorable economic data from the US in yesterday’s trade will cushion sharp downside or even reversal in prices.

In the Indian markets, Rupee depreciation will restrict sharp negative movement or even reversal in prices.