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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 11, 2014)

March 11, 2014, Tuesday, 06:26 GMT | 02:26 EST | 10:56 IST | 13:26 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note yesterday on the back of concerns of slowdown in growth in China after unfavorable data from the country last week. Also, mixed inventory data could not provide proper direction to prices.

However, strength in the DX coupled with mixed global market sentiments kept a check on gains.

In the Indian markets, base metals traded on a mixed note but Rupee appreciation capped sharp gains.


Copper

LME Copper prices slumped by more than 1 percent yesterday taking cues from growth concerns in the world’s biggest consumer, China after weak economic data from the country. Additionally, mixed economic data from Euro Zone acted as a negative factor. Further, strength in the DX coupled with mixed global market sentiments exerted downside pressure on prices.

Further, decline in LME inventories by 1.3 percent to 265,400 tonnes could not restrict downside movement. The red metal touched an intra-day low of $6608/tonne before closing at $6682/tonne on Monday.

MCX Copper prices plunged by around 2 percent yesterday owing to Rupee appreciation and touched an intra-day low of Rs.410.25/kg before closing at Rs.413.95/kg in the last trading session.


Outlook

We expect base metals prices to trade on a mixed note today on the back of estimates of favorable trade balance data from Euro Zone. Also, weakness in the DX coupled with upbeat market sentiments will act as a positive factor for prices.

While on the other hand, flat jobs data from the US along with mixed data from UK will restrict sharp gains or even reversal in prices. Also, Chinese growth concerns will continue to exert downside pressure on prices.

In the Indian markets, Rupee appreciation will cap sharp gains or exert downside pressure on the prices.