New York: 21:08 || London: 02:08 || Mumbai: 05:38 || Singapore: 08:08

Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 05, 2014)

March 5, 2014, Wednesday, 08:22 GMT | 03:22 EST | 12:52 IST | 15:22 SGT
Contributed by Angel Broking


Base metals on the LME traded higher yesterday on the back of receding geopolitical tensions between Russia and Ukraine after the Russian President Putin called back troops from the Ukraine border, thereby easing concerns regarding the demand outlook. Also, rise in risk appetite in the markets acted as a positive factor.

Further, strength in the DX along with unfavorable construction data from UK could not restrict upside in the prices.

In the Indian markets, Rupee appreciation capped sharp gains in prices of base metals.


Copper

LME Copper prices jumped by more than 1 percent yesterday taking cues from easing of war concerns between Russia and Ukraine, which was feared to damp demand for the red metal. Further, recovery in market sentiments in the latter part of trade supported gains.

However, rise in LME copper inventories by 0.5 percent to 275,200 tonnes along with strength in the DX restricted further gains. The red metal touched an intra-day high of $7068/tonne and closed at $7049/tonne in yesterday’s trade.

MCX Copper prices gained 0.9 percent yesterday and touched an intra-day high of Rs.444.45/kg and closed at Rs.443.70/kg on Tuesday.


Outlook

We expect base metals prices to trade on a mixed note today on the back of upbeat market sentiments coupled with expectations of positive retail sales data from the Euro Zone which will act as a positive factor.

While on the other hand, estimates of unfavorable economic data from the US in the evening session will cap sharp upside or even reversal in prices.

In the Indian markets, Rupee appreciation will restrict sharp positive movement or exert downside pressure on prices.