Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 11, 2013)

Contributed by Angel Broking

The base metals pack traded on a mixed note on the back of optimistic global market sentiments and favourable economic data's from US and Euro region. Further, positive comments from ECB president Draghi supported upside in prices.

However, strength in DX coupled with rise in LME inventories added downside pressure. Additionally, decline in nonmanufacturing PMI from China acted as a negative factor for prices.

In the Indian markets, appreciation in the Indian Rupee added downside pressure on prices.


Copper

Copper, the leader of the base metal pack increased by 0.4 percent in the last week on the back of optimistic global market sentiments and favourable economic data from US and Euro region.

However, rise in LME copper inventories by 11 percent which stood at 509,425 t onnes coupled with strength in DX capped he sharp gains in the prices. The red metal touched a weekly high of $7790/tonne and closed at $7749/tonne in the last trading session of the week.

On the domestic front, prices declined by 1.2 percent on the back of appreciation in the Indian Rupee and closed at Rs. 425.2/kg on Friday after touching a low of Rs. 424/kg in the last week.

Copper Inventories

LME copper inventories gained by whopping 11 percent in the last week and stood at 509,425 tonnes as on 8th March, 2013 as against 458,775 tonnes as on 1st March, 2013.

Copper inventories in the warehouse monitored by the Shanghai fell by 0.3 percent and stood at 225,416 tonnes for the week ending on 8th March, 2013.


Outlook

In the intra-day, we expect base metals prices to trade on the positive note on account of favourable economic data's from US in the previous week coupled with weakness in DX. However, decline in retail sales data and industrial production data from china may cap the sharp gains in prices. Appreciation in the Indian Rupee will cap sharp rallies in prices on the MCX.